Gold ticking higher on North Korea escalation

BENGALURU (Reuters) – Gold edged higher on Tuesday, supported by a ballistic missile test by North Korea and an easing dollar, but was still sitting near seven-week lows hit in the previous session.

North Korea test-launched a ballistic missile from its western region into the sea off its east coast on Tuesday, South Korea’s military said, ahead of a summit of leaders from the Group of 20 nations in Germany later this week.

“The North Korean missile launches are becoming second nature and the market look through them, but some jitters remain on escalation,” said Stephen Innes, head of trading APAC, OANDA in Singapore.

“(Though) not necessarily a strong buy gold signal, it has stopped the fall,” he added.

Spot gold rose 0.2 percent to $1,223.08 per ounce at 0417 GMT. On Monday, it fell 1.7 percent, its biggest one-day percentage loss since November, to touch a low of $1,218.31 an ounce, its weakest since May 11.

Reuters

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Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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