Safe haven gold extends rally to 11-month high after North Korea nuke test and U.S. warns of ‘massive’ response

Asian and European stocks fall, bonds flat, gold, silver, palladium, Swiss franc riseas Korea tensions flare asNorth Korea tests ‘hydrogen bomb’

North Korea prepares for possible ICBM launch says S. Korea

U.S. warns of ‘massive,’ ‘overwhelming’ military response to North Korea after meeting with Trump

Trump weighing new economic sanctions that target China

Gold is consolidating above the $1,300/ozkey resistance level and building on 4% gain seen in August

Relative Performance (1 Day)

Safe haven gold continued to eke out further gains of 0.73% today and reached its highest level in 11 months at $1,338.65/0z. The latest gains came after North Korea’s latest and most powerful nuclear test again sawinvestors diversify intosafe haven goldand other safe haven assets.

Asian and European shares have fallen and the geo-political risk led to thethe usual knee-jerk shift to safe havens pushing the yen, Swiss franc, gold and silver higher.

The Nikkei was down 0.93 and EuroStoxx 50 was down 0.45%. The Stoxx Europe 600 Index declined, with all industry sectors in the red.

The U.K.’s FTSE 100 Index dipped 0.3 percent and Germany’s DAX Index fell 0.5 percent. The MSCI All-Country World Index sank 0.2 percent, the largest dip in more than two weeks. Stock market futures suggest a difficult day for global equities.

The White House warned any nation doing business with Kim Jong Un’s regime would be met with economic sanctions and trade embargoes, and Trump’s defense chief said the U.S. has many military options.

Gold’s gains came after gold rose both last week and in August when gold and silver saw strong safe haven gains of 4% and 5% respectively.

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Gold Surges To $1338 as U.S. Warns of ‘Massive’ Military Response (Reuters)

Asian Stocks Fall, Yen Jumps After Korea Bomb Test (Bloomberg)

Yen, bonds and gold gain after North Korea tests ‘hydrogen bomb’ (Reuters)

Gas, Gold Are Boosted by Geopolitical Tensions (Bloomberg)

President Trump denounces North Korea’s ‘hostile, dangerous’ weapons test (CNBC)

Source: Marketwatch

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