Flight to Safety Mode!

So a business associate called me yesterday and the first thing out of his mouth was “Man the stock market looks frothy.”  Agreed.

The growing war of words between the US and North Korea are lifting the Swiss Franc the Japanese yen, government bonds. and certainly gold.  As is typical, investors are seeking out favored safe havens during all of this acute geopolitical uncertainty.

Donald Trump’s warning that North Korea faces “fire and fury like the world has never seen” didn’t help to diffuse the situation at all. In fact, North Korea has now tested a very powerful Hydrogen bomb,so the situation is now growing critical.

Gold has been shining a lot brighter for investors now trading around $1268 per ounce, it rose to its highest level in just over two months.  Silver is also enjoying gains from the “flight to safety” activity.  In recent trading the other metals also have showed impressive gains, platinum gained 0.6%, and is trading around $972.95 an ounce, silver rose 1.7% to $16.70 per ounce.  The metals seem to be building a firm base at these levels.

In the currencies traders are moving into the  Swiss franc which has increased by more than 1% against the US dollar and saw its biggest one-day gain against the euro in more than two years or longer.  The loser in this scenario is largely global equity markets, as investors flee to safety and take profits off the table.


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