Global Shares Under Pressure of Tensions on the Korean Peninsula, Gold Extends Gains
Gold futures prices extended their rally to a third consecutive trading session on Tuesday as escalating geopolitical tensions on the Korean Peninsula fuelled safe-haven demand. The precious metal hold on gains after having jumped sharply in the previous session.
Contracts for November gold added 0.35 percent in Asian trading session after having closed at the highest level in nearly a week on Monday. The metal has been supported by a heated exchange of rhetoric between Trump and Kim over North Korea’s nuclear and missile programs after North Korea conducted its sixth and most powerful nuclear test on Sept. 3.
According to news reported by South Korea’s Yonhap news agency, Pyongyang has been boosting defenses on its east coast after U.S. bombers flew close to the Korean peninsula at the weekend. Leaders on both sides continued to exchange threats and insults.
After Trump claimed on Twitter that North Korean leader Kim Jong Un and Foreign Minister Ri Yong Ho “won’t be around much longer” if they acted on their threats, Ri said that Trump’s Twitter comments were tantamount to a declaration of war and that Pyongyang had the right to take countermeasures.
U.S. stocks were lower after the close on Monday with the Dow Jones Industrial Average declining 0.24%, the S&P 500 index shedding 0.22%, and the NASDAQ Composite index tumbling by 0.88%. Meanwhile, Asian shares also traded lower.
Buy Stop at 1312.00, Take profit at 1320.00, Stop loss at 1308.00