• Rumours that N.Korea set to test missile over the weekend
  • Missile said to be capable of hitting west coast of US
  • Gold hits high of the day after dropping on NFP

In recent moments there are several reports on social media that North Korea could be set to carry out another missile test over the weekend. The reports cite Sputnik, a Russian news outlet, as the source and if they are true it represents a further escalation in the recent geopolitical tensions.   

What makes the latest reports all the more worrying form a US perspective is that the missile said to be tested is believed to be capable of hitting the west cost of America. Recent months have seen a clear ratcheting up of tensions between the US and N. Korea and the markets are sensitive to these rumours. 

Comments last night from President trump to the US military now seem to take on a greater importance. Trump told leaders of the military at a dinner last night that the moment was a “calm before the storm” and it will be worthwhile watching the situation closely in the coming session to look for any signs of further escalation. 

Gold had earlier fallen to its lowest level in almost 2 months following what was on balance probably a positive NFP report. However, these rumours have seen the precious metal catch a bid and price has now turned positive on the day and is attempting to break higher. 

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 Gold has spiked on the rumours and to make a new high for the day after earlier hitting its lowest level since August. Source: xStation

Longer term Gold remains in a downtrend with a steady slide seen since making a 2017 peak of 1357 back at the start of last month. 1270 could be a key level to watch on a closing level with a break higher form 1270 back in August leading to the strong move higher. A close above here could see a recovery occur whereas a close back under 1270 would be a negative sign. 

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 1270 could be a key level to watch on a closing basis tonight. Source: xStation