Safe-haven demand surges, dollar sinks after North Korean missile launch over Japan
Analysts expect gold, which is up sharply, to test 2016’s highs
Safe-haven trade prevailed in the markets on Tuesday after North Korea’s missile launch over Japan, with gold, US Treasuries and the yen the preferred asset classes as the dollar continued to reach record lows against the euro. The gold price rose sharply to $1,320.73/oz, the highest level yet in 2017, after South Korea announced that it had undertaken its own missile tests on the border with North Korea in retaliation, raising tension. "Now that gold has finally breached $1,300, I expect a surge in purchasing momentum. Investors might even be eyeing the potential to test 2016’s highs of $1,375," FXTM analyst Jameel Ahmad said. The JSE gold index also surged, although gains were capped in later trade after the rand broke through R13/$, reaching R12.9499 in intraday trade. The index closed 6.83% higher at 1,447.03 points. AngloGold Ashanti’s share price rose 7.81%, to R130.45 and Harmony’s 7.05%, to R25.51. The dollar weakened to $1.2070 to the euro, its worst in 28 months, surprisin...
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