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Gold up as North Korea threatens US in Guam

isle of Guam
The above image shows a satellite image of the US territory of Guam. Photo credit: Nasa

The price of gold has risen this morning following the escalation in tensions over the rogue state of North Korea. Just before 8am the price reached $1,265.63 per ounce, rising over 0.3% while gold for December delivery rose 0.6% to $1,270.40 per ounce. This morning Pyongyang said it could bomb the US enclave of Guam in the Pacific. The statement follow’s US president Donald Trump saying any further threats to the US by North Korea would be met with “fire and fury”.

This significant rise in tensions between the US and North Korea follow the passing of a UN resolution endorsing sanctions against Pyongyang, these are aimed at limiting the trade income of the state by one third. China, the state on closest terms with North Korea, says it is committed to enforcing the sanctions “100%”.

For the gold price North Korea is not the only factor at play as the dollar ticks up: “We’ve had some competing forces play out over the past 12 hours – the US dollar was stronger off economic data, but that was quickly reversed with President Trump’s comments about North Korea earlier today (Wednesday),” ANZ analyst Daniel Hynes told Reuters. “I think (the North Korea situation) is going to continue to provide a little bit of support, but not enough to push prices significantly higher from here,” he added.

However, the North Korea situation is now seen as definitive for this week’s gold price by some. “This in turn suggests that at least for the balance of this week, we likely should be long gold as the heated rhetoric could raise the odds of military action,” said INTL FCStone analyst, Edward Meir.

In mining news Uganda has closed down an illegal mine, making tens of thousands potentially jobless. The BBC report the watchdog Global Witness as describing the Ugandan mining industry as “infested with corruption from bottom to top”.

In the UK, former chancellor Alistair Darling has warned of dangerous levels of consumer debt and carelessness ten years on from the financial crisis. “The biggest danger is complacency. And of course in a few years’ time when institutional memories start to fade, and the people around have all gone and retired, then that’s where the risk occurs,” he told Radio 4’s Today programme.

Elsewhere bitcoin has reportedly broken another record, reaching $3,500, almost three times the value of gold.

 

Link to this article: : http://www.goldmadesimplenews.com/gold/gold-up-as-north-korea-threatens-us-in-guam-13333/

Posted by on Aug 9 2017. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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