Global Silver and gold prices showed 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 will keep a close watch on the actions of the United States for a little longer before taking a decision of firing missiles towards US Pacific territory Guam. This made investors to 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 tensions affect the stock markets and in turn taking a dip. When such major geopolitical situation arises the bulls, investors immediately shift towards the 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 in very near future that this type of tense situation will get better and better between the two countries. 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!