Gold fell to a two-week low early on Tuesday, mainly on account of US macro data that showed job openings rising more than expected. In this regard, the Labor Department said that job openings increased by 461,000 to a seasonally adjusted 6.2 million, the highest since December 2000. The dollar strengthened as a result, pulling gold down to just under $1256, a two-week low. However, the weaker in gold abruptly ended late in the day as stocks turned south after President Trump issued a rather stern warning to the North Koreans, saying that the country would face “fire and fury” on a scale that the “world has not seen,” eerily suggesting that the US was basically prepared to wipe North Korea off the map. The rhetoric was partly in response to North Korea’s threat that it would teach Washington a “severe lesson” should it be provoked, but we suspect that a lot of this also has to do with a Washington Post report saying that the North Koreans have possibly developed a miniaturization of a nuclear device that could be embedded within an intercontinental ballistic missile. Making matters worse, the Japanese defense ministry seems to corroborate this US assessment.
|Precious Metals Daily Report --- August 9 2017.pdf||438.18 KB|