Gold Rises to 2017 Highs on NKorea Missile Test, Stocks Ignore Event

Gold Rises to 2017 Highs on NKorea Missile Test, Stocks Ignore Event

Gold Rises to 2017 Highs on NKorea Missile Test, Stocks Ignore Event

$DIA, $SPY, $QQQ, $VXX

  • Investors Shrug Off NKorean Missile Launch

Gold rallied to the highest level this year after North Korea fired a ballistic missile over Japan, boosting haven demand. Palladium extended a rally and platinum rose above $1,000 an ounce.

NKorea rattled equity markets around the globe Tuesday morning after firing a missile over the Japanese island of Hokkaido.

In response, President Trump said “all options are on the table” and reports indicated that the US and Japan will call for an international embargo on Crude Oil exports to North Korea.

The US market shrugged off the event and recovered its initial losses and finished in the Green across the board.

Gold and Silver spiked then settled back and finished in the Red on the day.

  • Dec Gold lost 3.90 to $1311.40 oz
  • Sept Silver lost 0.141 to $17.30oz

Gold has risen 15% YTD, rising every month sans June, as investors weigh the possibility of conflict in Asia, with Kim Jong Un’s regime pushing on with missile tests and US President Donald Trump vowing a strong response.

President Trump has said force is an option to prevent NKorea from gaining an intercontinental missile that could deliver a nuclear weapon to the US

The precious Yellow metal has also climbed as the Fed is expected to go slow on further interest rate increases, which has weakened USD.

Miners’ and Royalty Streamers shares advanced. The FTSE/JSE Africa Gold Mining Index climbed 5.5% after marking highest since May, with Harmony Gold Mining Co. Ltd. (NYSE:HMY), and AngloGold Ashanti Ltd.(NYSE:AU) leading the way.

Tuesday, the major US stock market indexes finished at: DJIA +56.97 at 21866.67, NAS Comp +18.87 at 6301.87, S&P 500 +2.06 at 2447.75

Volume: Trade was lite again on the NYSE at: 680.7-M/shares exchanged on the NYSE

  • NAS Comp +17.1% YTD
  • DJIA +10.6% YTD
  • S&P 500 +9.3% YTD
  • Russell 2000 +2.0% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.25) Neutral (0.07) Bullish (0.44) Bullish (0.25)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Neutral (0.15) Neutral (-0.08) Bullish (0.29) Bullish (0.25)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.28) Neutral (0.15) Bullish (0.35) Bullish (0.33)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Neutral (-0.19) Neutral (0.03) Neutral (-0.23) Bearish (-0.38)

Stay tuned…

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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