Gold is steady on North Korea tension and French election
US vice-president Mike Pence reassured Japan of the US’s commitment to reining in North Korea’s nuclear and missile ambitions on Tuesday
London — Gold held steady on Tuesday after touching five month highs the previous session, bolstered by the dollar softening versus the yen, North Korea tension and the French presidential election. US vice-president Mike Pence reassured Japan of the US’s commitment to reining in North Korea’s nuclear and missile ambitions on Tuesday, after warning that US strikes in Syria and Afghanistan showed the strength of its resolve. The dollar dipped fractionally versus the yen after US-Japan trade talks, giving back gains made earlier after US treasury secretary Steven Mnuchin told the Financial Times a strong dollar was a positive in the long term. A weaker dollar makes dollar-priced gold cheaper for nonUS investors, and the precious metal, seen as a safe haven, also benefits from political uncertainty. "Short-term risk is skewed to downside, the market needs to correct but underlying support is there with the focus on political uncertainties. We see the yen continuing to strengthen," Saxo...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.