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North Korea Is Expected To Launch An ICBM On Saturday - Business Insider

North Korea Is Expected To Launch An ICBM On Saturday - Business Insider

Release Date:  Friday, September 8, 2017


Precious metals moved higher this week due to safe haven demand as well as interest rate speculation.

"Looking at the hurricanes, the damage is expected to be huge and because of that safe-haven flows into gold… have been seen of late …

While the threat of hurricane damage has been at the forefront of headlines this week, gold’s strength has also been due in part to “the ongoing North Korean tensions as well. The risk for intensified conflicts is there…”

In addition to safe haven demand, uncertainty regarding fiscal policy helped gold rally as “weaker-than-expected economic data provided some doubt as to the next rate hike by the Federal Reserve…” (“Precious – Gold Hits 1-yr Peak As Dollar Sags, N. Korea Concerns Support.” Reuters 9.07.17)

Gold ended the week up $21.60, closing at $1,347.00. Silver prices closed at $18.03, up $0.23.

North Korea Is Expected To Launch An ICBM At Full Range On Saturday - Business Insider
This Saturday is the anniversary of North Koreas country’s founding and in celebration experts believe North Korea will mark the celebration with a full-range test of an intercontinental ballistic missile.

“South Korean media earlier this week reported that a North Korean ICBM appeared to be on the move, and CNN cited the South Korean prime minister on Thursday as saying that ‘some believe’ a launch Saturday was possible …

“Also this week, North Korea said the US could expect more ‘gift packages’ in the form of further missile testing. With only two successful tests on record, North Korea’s latest ICBM is in need of further trials …

“But firing a ballistic missile thousands of miles across the globe could have disastrous consequences if not executed properly …

“An unannounced missile heading toward the US mainland from North Korea could cause a nuclear retaliation, so Pyongyang would most likely try to aim the missile elsewhere …

“North Korea faces similar scrutiny today, with many doubting its nuclear and missile technology. Media release from North Korea often seem intent on proving doubters wrong, and the country’s tests somethings seem designed to demonstrate previously unattributed capabilities.” (“North Korea Is Expected To Launch An ICBM At Full Range On Saturday – Here’s How It Could Go Down.” Business Insider 9.07.17)

Dollar Falls After Fischer’s Resignation As Traders Fear Losing A ‘Bedrock’ member of Fed - CNBC
On Wednesday, the U.S. dollar fell after Federal Reserve Vice Chairman Stanley Fischer announced his resignation.

“The dollar index hit an eight-day low of 92.005 and hovered around the level at 11:31 a.m. in New York, down 0.25 percent …

“Fischer said his resignation will take effect Oct. 13 and cited ‘personal reasons’ for his departure. The resignation comes about nine months before Fischer’s term as vice chairman was set to expire. It also leaves another critical position within the central bank to be filled by President Donald Trump, as Chair Janet Yellen’s term will expire early next year …

“’ I don’t think it’s good news. Fischer along with Yellen were bedrocks of monetary policy,’ Boris Schlossberg, managing director of FX strategy for BK Asset Management, told CNBC in an email …

“’Capital markets generally hate transitions, … and it appear that we will now have wholesale change at the Fed which is the last independent and competent part of US policymaking apparatus,’ Schlossberg said.” (“Dollar Falls After Fischer’s Resignation As Traders Fear Losing A ‘Bedrock’ member of Fed - CNBC.” CNBC 9.06.17)

Here’s Why Substantial Gains In Gold Prices Are Coming - MSN
With Labor Day over and schools back in session, it’s time to assess some gold scenarios that might occur this fall.

1. The U.S. Economy, the Fed and Consumer Debt
“It seems like the last financial crisis has but been forgotten. Equity markets trade at historic highs, while debt markets are juiced up by interest rates that remain within spitting distance of their all-time lows. Another U.S. corporate-earnings season is winding down, and companies’ results have generally looked good. So, our current elevated market levels seem justified …

“It seems like the U.S. economy has grown based on credit expansion from the Federal Reserve -- but the Fed is now gradually trying to remove the punch bowl. However, recent poor housing and retail statistics seem to have given Fed members pause just as they’re appear ready to raise interest rates one final time in 2017…

“The idea that central banks could somehow create growing economies and beneficial inflation through money creation (i.e., debt) is losing credence. Will this autumn see the collapse in confidence that always results in a financial crisis?…

2. A (Border) Wall of Worry
“The intersection of politics and the U.S. economy will soon be on full display in Washington as Congress this fall takes up tax reform, raising the federal debt ceiling and President Trump’s proposed U.S./Mexican border wall …

“So without provocation, a government shutdown been threatened over a seeming settled issue. Given Trump’s failure to repeal and replace Obamacare, where will consumer and investor confidence in the markets and the U.S. government stand during (and after) these fights? Confidence, like markets, can be fragile …

3. Global Risks
“Debt levels in Europe, China and Japan are all very high, while bank failures are a constant concern on the Continent. China is also dealing with its own debt issues as it wrestles with shadow banking failures, and the Communists will soon hold a party congress to determine the nation’s future direction …

“Other potential surprises lurk around every corner of the globe, with North Korea, the Middle East and cyber-warfare all stubbornly remaining in the headlines. The risks are real, and we as investors must account for them …

4. How to Play Things
“’Buy low and sell high’ is a simple enough concept to understand, but much more difficult to actually put into practice with stock and bond markets both at near historic highs …” (“Here’s Why Substantial Gains In Gold Prices Are Coming.” MSN 9.05.17)