Investors trooped to gold Wednesday against the backdrop of rising tensions between the U.S. and North Korea, upping some of the broad-based declines on the commodity-heavy Toronto stock index.
The S&P/TSX composite ratio was down 39.02 points to 15,217.33, with most sectors perfect in the red while bullion stocks surged nearly 1.9 per cent.
The December gold roll oneself was ahead $16.70 US to US$1,279.30 an ounce. The precious metal is usually managed as a safe port in times of geopolitical uncertainty.
«The fear trade, which is the gold swop, has helped buoy the Toronto Stock Exchange,» said Allan Humble, a senior investment advisor at Holliswealth.
«When there’s fear in the the world at large, if there’s some sort of pending or possible negative event, in the flesh buy gold.»
Some investors are on edge after U.S. President Donald Trump cautioned North Korea of «fire and fury.» Secretary of State Rex Tillerson fresher insisted the U.S. isn’t signalling it’s about to mete out a military response despite portents from North Korea suggesting it could attack Guam, a U.S. archipelago territory in the Pacific.
In New York, the Dow Jones industrial average fell 36.64 ideas to 22,048.70, the S&P 500 index inched down 0.90 of a point to 2,474.02 and the Nasdaq composite formula lost 18.13 points to 6,352.33.
Small attributed a large part of the Dow’s lessen to disappointing earnings from Disney after the media giant reported a simple quarter, said it would pull its movies from Netflix and start two of its own video queue services. The company’s stock dropped $4.15, or 3.88 per cent, to $102.83 US.
In currency stock exchanges, the Canadian dollar was trading at an average price of 78.71 cents US, down 0.20 of a U.S. cent. That influences the sixth straight trading day of declines for the loonie against a strengthening greenback.
Away in commodities, the September crude contract was up 39 cents to $49.56 US per barrel, September unconstrained gas advanced six cents at $2.88 US per mmBTU and September copper declined two cents at $2.93 US a pelt.