Comments
Gold prices edged up to touch their highest in over two months on Friday, set for a fourth consecutive day of gains as rising tensions between the United States and North Korea stoked safe-haven buying.
Spot gold was up 0.2 per cent at $1,287.90 per ounce at 0042 GMT. Earlier in the session, it marked its highest since June 8 an $1,288.52 an ounce. US gold futures for December delivery rose 0.3 per cent to $1,294.10 per ounce.
President Donald Trump had ratcheted up his rhetoric towards North Korea and its leader on Thursday, warning Pyongyang against attacking Guam or US allies after it disclosed plans to fire missiles over Japan to land near the US Pacific territory.
On Friday, the dollar set an eight-week low against the yen, Australian stock futures slumped early and other Asian markets looked set to follow on the tensions between the United States and North Korea.
US producer prices
US producer prices unexpectedly fell in July, recording their biggest drop in nearly a year and pointing to a further moderation in inflation that could delay a Federal Reserve interest rate hike.
Gold demand in India remained sluggish this week as local prices jumped to their highest level in nearly three months and a rally in global prices of the precious metal dampened fresh buying elsewhere in Asia.
'Very weak' US inflation
The Fed expects “very weak” US inflation to rebound thanks to a slide in the dollar and to a labour market that keeps getting hotter, one of the Fed's most influential officials said in comments that reinforce its gradual policy-tightening plan.
The European Central Bank is slightly more likely to announce a change to its asset purchases programme in September than October, a Reuters poll found.
Japan's exports were expected to record an eighth straight month of growth in July, a Reuters poll found, suggesting robust offshore demand could underpin moderate economic recovery.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.