Gold firmed overseas as North Korea ramped-up the saber rattling in reaction to joint military exercises between the U.S. and South Korea commenced today. While the yellow metal was not able to sustain the initial probe above $1300 on Friday, further tests may be in the offing.
“The Korean People’s Army is keeping a high alert, fully ready to contain the enemies. It will take resolute steps the moment even a slight sign of the preventive war is spotted,” threatened the North Korean state-run newspaper Rodong Sinmun. According to CNN, they went on to warn that “neither Guam, Hawaii nor the US mainland can ‘dodge the merciless strike.'”
The economic calendar is quiet today. The Chicago Fed National Activity index fell to -0.01 in July, versus positive revised 0.16 in June. The eclipse later today will likely disrupt markets and commerce as everyone will be outside looking to the sky with cardboard sunglasses.
Later this week, focus will shift to the KC Fed’s Jackson Hole Symposium. Both Mario Draghi and Janet Yellen speak on Friday.