Off the wire
• U.S. dollar drops amid geopolitical risk  • Red Star lead 2-0 in Adriatic league finals  • Oil prices rise on possible output cuts extension  • Think-tanks of China, Kyrgyzstan to expand cooperation  • Ghanaian President Akufo-Addo bans purchase of new vehicles for gov't appointees  • Latvia envisages 1.6-percent budget deficit in 2018  • Spanish shares fall slightly  • 2nd LD: Explosions hit Dortmund team's bus, one player injured  • Urgent: Germany's Dortmund cancels Champions League match after explosions  • News Analysis: Trump's infrastructure plan expected to boost U.S. jobs, but with downsides  
You are here: 　 Home

Gold up sharply on geopolitical worries

Xinhua, April 11, 2017 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Tuesday as geopolitical tension between the U.S., Russia, and North Korea increased.

The most active gold contract for June delivery rose 20.3 U.S. dollars, or 1.62 percent, to settle at 1,274.20 dollars per ounce.

Gold was given extensive support, reaching its highest level since November, as a North Korean statement promised 'catastrophic consequences' after the U.S. began to move an aircraft carrier group toward the sea off the Korean peninsula.

Tension has increased between the U.S. and Russia over an attack on a Syrian air base, which the U.S. said was in retaliation for a chemical weapons attack. Russia responded with a statement saying they will respond with force to any aggressor. Investors are flocking to the precious metal's safe haven properties as they remain unsure of the result of this incident.

The U.S. Dollar Index also fell by 0.27 percent to 100.74 as of 1800 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

The precious metal was given further support as the U.S. Dow Jones Industrial Average fell by 22.86 points, or 0.11 percent as of 1800 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

The job openings and labor turnover survey report released by the U.S. Department of Labor showed job openings increasing by 2.1 percent during the month of February to a 5.743 million rate, a figure which analysts note was better-than-expected, and likely prevented the precious metal from rising even higher.

Traders are waiting for the import and export prices on Wednesday, weekly jobless claims and producer price index on Thursday, along with the consumer price index and retail sales report on Friday.

Silver for May delivery added 33.9 cents, or 1.89 percent, to close at 18.254 dollars per ounce. Platinum for July delivery rose 29.5 dollars, or 3.14 percent, to close at 969.50 dollars per ounce. Enditem