Credit: Piqsels

Global Silver and gold prices showed a downtrend on Tuesday, 16 Aug. 2017, as tensions between the United States and North Korea have started easing out.

The North Korean leader Kim Jong Un said they would keep a close watch on the United States’ actions for a little longer before deciding between firing missiles towards US Pacific territory Guam. This made investors again turn to slightly riskier assets such as equities.

On Tuesday, December, Comex gold fell by $6.00 an ounce to $1,288.00, whereas September Comex silver was trading at $16.995 an ounce, down by $0.075, the earlier week.  However, this is a standard phenomenon seen across the world in the stock market. This type of tension affect the stock markets and, in turn taking a dip. When such a major geopolitical situation arises, the bulls, investors immediately shift towards investments in precious metals, demand for safe-haven assets, as it is called.

But the stock market analysts are very sceptical about this major rift between the U.S and North Korea. It is not expected that this tense situation will get better and better between the two countries shortly.  This matter is expected to continue for quite some time, and markets can be very volatile. It needs a mention here, China on Monday has banned key North Korean imports!