Gold Prices Inch up Higher, Due To North Korea Issues
By Daisy Joseph
The holiday trade was beneficial for gold, as the price inched up higher. The stock market in Japan remained open on Easter Monday holiday. The Japanese stocks faced a decline due to the geopolitical issues surrounding North Korea. Amidst political tension and pressure, North Korea tested a ballistic missile. Even though the test was a failure, the move made by North Korea has worried the investors.
Instead of investing in the forex market, investors showed interest in the well known heaven metal gold. The US president Trump has already showed his disdain with North Korea. On Friday, the new administration commented that maximum pressure and engagement will be exerted to Pyongyang. Mike Pence, the Vice President of the USA has started his 10-day trip to the region to hold talks amidst other issues.
The value of the US dollar continues to feel the pressure after the famous rally. The interest rate hike in 2017 as proposed by the Fed wasn’t interesting anymore for the investors. From the present political situation, investors could determine that the regulatory reforms and spending proposal would take a long time to implement. As a result, the US dollar fell against a basket of international currencies. The US Treasury yields also reduced, following the currency pattern. The market is now focused on anti-interest bearing assets.
Stanley Fischer, Vice Chair of the Federal Reserve has indicated that the central banks would adopt tightened monetary policy. The gold metal was slowing down in the first quarter, but the downward trend won’t continue for much longer.