Dollar down, gold gains on global risks; US stocks inch up

North Korea Deputy United Nations Ambassador Kim In Ryong speaks to the media at the UN

US gold futures were down 0.5 percent at $1,285.20.

North Korea on Sunday made what was believed to be a failed missile test launch, increasing geopolitical risks.

Spot silver edged up 0.1% to US$18.40 per ounce, after hitting over a five month high of US$18.649 in the prior session.

"Gold will likely retain a measure of strength heading into the French elections in about one week's time, while ongoing tensions in North Korea should also keep the markets rather nervous", said INTL FCStone analyst Edward Meir.

Uncertainties over Mr Trump's policy towards North Korea have been growing since the US Navy fired 59 Tomahawk missiles at a Syrian airfield on April 6.

Shares dipped on Monday (April 17) while the U.S. dollar and United States bond yields fell after soft USA economic data hurt investor sentiment already frayed by worries over North Korea and upcoming French elections.

Most European share markets will be closed for Easter holidays.

The Atlanta and New York Federal Reserve banks downgraded their outlook for US economic growth for the first quarter after disappointing data on retail sales and consumer prices in March.

The Bloomberg Dollar Spot index fell 0.4 percent and has sunk about 4.8 percent from a high reached in January.

Data showing China's economy grew faster than expected in the first quarter helped offset the soft USA figures.

US stocks regained some ground after the recent global risks had weighed on the market last week.

Most popular: Neil Buchanan: Will Tax Reform Go the Way of Trumpcare?

That dwarfed any relief for market players after the U.S. Treasury did not name China as a currency manipulator, avoiding an all-out confrontation on currencies between the world's two largest economies.

U.S. Vice President Mike Pence warned North Korea on Monday that recent American military strikes in Syria and Afghanistan showed President Donald Trump's resolve should not be questioned, but Pyongyang vowed to continue missile and nuclear tests. The 10-year U.S. Treasury yield was at 2.23 percent.

"And compared to US bond yields, which have given up much of their gains after the election, USA share prices, having gone through a limited correction, look vulnerable given potential developments in North Korea or the French election", she said.

In a highly anticipated report on Friday, Trump's administration declined to name any major trading partner as a currency manipulator, backing away from a key campaign promise to slap that label on China.



Other news