#CBC: « Investors see shine in gold amid growing tensions between U.S. and North Korea – Business »
Investors flocked to gold Wednesday against the backdrop of rising tensions between the U.S. and North Korea, offsetting some of the broad-based declines on the commodity-heavy Toronto stock index.
The S&P/TSX composite index was down 39.02 points to 15,217.33, with most sectors finishing in the red while bullion stocks surged nearly 1.9 per cent.
The December gold contract was ahead $16.70 US to US$1,279.30 an ounce. The precious metal is usually seen as a safe port in times of geopolitical uncertainty.
« The fear trade, which is the gold trade, has helped buoy the Toronto Stock Exchange, » said Allan Small, a senior investment advisor at Holliswealth.
« When there’s fear in the world, if there’s some sort of pending or possible negative event, people buy gold. »
Some investors are on edge after U.S. President Donald Trump warned North Korea of « fire and fury. » Secretary of State Rex Tillerson later insisted the U.S. isn’t signalling it’s about to mete out a military response despite threats from North Korea suggesting it could attack Guam, a U.S. island territory in the Pacific.
In New York, the Dow Jones industrial average fell 36.64 points to 22,048.70, the S&P 500 index inched down 0.90 of a point to 2,474.02 and the Nasdaq composite index lost 18.13 points to 6,352.33.
Small attributed a large part of the Dow’s decline to disappointing earnings from Disney after the media giant reported a weak quarter, said it would pull its movies from Netflix and start two of its own video streaming services. The company’s stock dropped $4.15, or 3.88 per cent, to $102.83 US.
In currency markets, the Canadian dollar was trading at an average price of 78.71 cents US, down 0.20 of a U.S. cent. That marks the sixth straight trading day of declines for the loonie against a strengthening greenback.
Elsewhere in commodities, the September crude contract was up 39 cents to $49.56 US per barrel, September natural gas advanced six cents at $2.88 US per mmBTU and September copper declined two cents at $2.93 US a pound.
Note: « Previously Published on: 9 August 2017 | 5:30 pm, as ‘Investors see shine in gold amid growing tensions between U.S. and North Korea – Business’ on CBC RADIO-CANADA. Here is a source link for the Article’s Image(s) and Content ».