Investors see gleam in bullion amid flourishing tensions between U.S. and North Korea

Investors flocked to bullion Wednesday opposite a backdrop of rising tensions between a U.S. and North Korea, offsetting some of a broad-based declines on a commodity-heavy Toronto batch index.

The SP/TSX combination index was down 39.02 points to 15,217.33, with many sectors finishing in a red while bullion bonds surged scarcely 1.9 per cent.

The Dec bullion agreement was forward $16.70 US to US$1,279.30 an ounce. The changed steel is customarily seen as a protected pier in times of geopolitical uncertainty.

“The fear trade, that is a bullion trade, has helped buoy a Toronto Stock Exchange,” pronounced Allan Small, a comparison investment confidant during Holliswealth.

“When there’s fear in a world, if there’s some arrange of tentative or probable disastrous event, people buy gold.”

• North Korean chief hazard has Californians updating ‘Duck and cover’
• U.S. secretary of state says no ‘imminent’ North Korea hazard notwithstanding rhetoric

Some investors are on corner after U.S. President Donald Trump warned North Korea of “fire and fury.” Secretary of State Rex Tillerson after insisted a U.S. isn’t signalling it’s about to mete out a troops response notwithstanding threats from North Korea suggesting it could conflict Guam, a U.S. island domain in a Pacific.

In New York, a Dow Jones industrial normal fell 36.64 points to 22,048.70, a SP 500 index inched down 0.90 of a indicate to 2,474.02 and a Nasdaq combination index mislaid 18.13 points to 6,352.33.

Small attributed a vast partial of a Dow’s decrease to unsatisfactory gain from Disney after a media hulk reported a diseased quarter, pronounced it would lift a cinema from Netflix and start dual of a possess video streaming services. The company’s batch forsaken $4.15, or 3.88 per cent, to $102.83 US.

In banking markets, a Canadian dollar was trade during an normal cost of 78.71 cents US, down 0.20 of a U.S. cent. That outlines a sixth true trade day of declines for a loonie opposite a strengthening greenback.

Elsewhere in commodities, a Sep wanton agreement was adult 39 cents to $49.56 US per barrel, Sep healthy gas modernized 6 cents during $2.88 US per mmBTU and Sep copper declined dual cents during $2.93 US a pound.

Article source: http://www.cbc.ca/news/business/stocks-north-korea-1.4240432?cmp=rss