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PRECIOUS-Gold hits 10-mth high in wake of N.Korea nuclear test
September 4, 2017 / 1:08 AM / 3 months ago

PRECIOUS-Gold hits 10-mth high in wake of N.Korea nuclear test

    Sept 4 (Reuters) - Gold prices hit their highest in nearly
10 months early on Monday after North Korea's latest and most
powerful nuclear test drove investors towards safe-haven assets.

    FUNDAMENTALS    
    * Spot gold        was up 0.8 percent at $1,335.31 per ounce
by 0041 GMT, after earlier touching its strongest since Nov. 9
at $1,336.79.
    * U.S. gold futures         for December delivery were up
0.8 percent at $1,340.90.
    * The Japanese yen and sovereign bonds also climbed on
Monday as North Korea's nuclear test provoked the usual
knee-jerk shift to safe havens, while futures pointed to a
difficult day for global equities.                   
    * North Korea on Sunday conducted its sixth nuclear test,
which it said was of an advanced hydrogen bomb for a long-range
missile, prompting the threat of a "massive" military response
from the United States if it or its allies were threatened.
            
    * South Korea's military said on Monday its air forces and
the army carried out a missile drill early in the day in
response to North Korea's nuclear test, adding the drills
targeted the area where the test had been carried out.
            
    * Trade negotiators from Canada, the United States and
Mexico presented more proposals for a renewed North American
Free Trade Agreement on Friday and tried to put behind them
threats from U.S. President Donald Trump to pull out of the
treaty.             
    * The European Central Bank is likely to announce a
reduction of its monthly asset purchases in October, according
to a majority of economists in a Reuters poll, who also said
they expect the central bank to shut down the programme by the
end of next year.             
    * The European Central Bank will discuss how to initiate a
careful withdrawal from its asset purchase programme,
rate-setter Ewald Nowotny said on Friday.             
    * Traders held to expectations Friday that the Federal
Reserve would probably wait until the middle of 2018 before
raising rates, after a government report showed employers added
fewer jobs last month than expected.                          
          
    DATA/EVENT AHEAD (GMT) 
    
     0830    U.K.       Construction PMI           Aug 
     0830    Euro Zone  Investor sentiment index   Sep  
     0900    Euro Zone  PPI                        Jul 

 (Reporting by Apeksha Nair in Bengaluru; Editing by Joseph
Radford)
  

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