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Gold inches lower as North Korea tensions ease

Gold bars and Swiss Franc banknotes are seen in this illustration picture taken at the GSA in Vienna November 13, 2014. — Reuters picGold bars and Swiss Franc banknotes are seen in this illustration picture taken at the GSA in Vienna November 13, 2014. — Reuters picBENGALURU, Aug 15 — Gold edged lower early today, weighed down by a steady US dollar and firmer Asian stocks as geopolitical tensions between the United States and North Korea appeared to ease.

Spot gold had fallen 0.2 per cent to US$1,279.01 (RM5,491.43) per ounce by 0013 GMT.

US gold futures for December delivery fell 0.4 per cent to US$1,285.00 per ounce.

North Korea’s leader received a report from his army on its plans to fire missiles towards Guam and said he will watch the actions of the United States for a while longer before making a decision, the North’s official news agency said today.

Defence Secretary Jim Mattis warned yesterday that the US military would be prepared to intercept a missile fired by North Korea if it was headed to Guam.

Stocks around the world rose along with US Treasury bond yields and the US dollar yesterday as investors regained some appetite for riskier assets as the United States and North Korea appeared to take a break from their war of words.

One of the Federal Reserve’s most influential members expects to raise interest rates once more this year, and to soon begin shedding some of the Fed’s bond holdings, according to comments yesterday that pushed back on doubts in financial markets.

Gold’s rally in recent weeks may be its first boosted by Twitter, but for the gains to sustain it will likely take more than just the ramping up of global geopolitical tensions amid bellicose tweets from US President Donald Trump. — Reuters

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