.jpg/jcr:content/renditions/original-size.webp "Spot Gold 050717")
.jpg/jcr:content/renditions/original-size.webp "Spot Gold 050717")
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Risk-off sentiment rises on North Korea threat
The broad sell-off within Asian markets had continued into the European session after North Korea sparked a new wave of concern over further escalation of their missile threats. Dragging markets out of their desensitised form towards these missile tests had been the latest Intercontinental Ballistic Missile. The successful test of the abovementioned firepower now suggests that US territories, such as Hawaii and Alaska, are within North Korea’s reach and adds to the factor of uncertainty towards the escalation of geopolitical tensions.
The trio of haven assets including US treasuries, gold and USD/JPY were seen responding to the lift in risk sentiment, albeit moderately. Specifically, gold prices were seen rebounding ahead of the key support at $1217, though the move had been slight. With items including the Fed minutes and US NFP ahead, items that could exert an influence on the US dollar, the market would be keeping watch on the price setup to see if it remain in the near-term down trend or exhibit a more decisive reversal for trade.
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