FxWirePro: Safe haven assets slide as North Korea concerns ease

Safe haven assets are facing sell-offs as the tensions surrounding war rhetoric between Pyongyang and Washington ease. Top safe haven assets, Gold and the Japanese yen rose sharply last week after both Pyongyang and Washington exchanged military threats. While DPRK revealed plans to strike a Western Pacific US territory Guam, the US President Donald Trump said military options on North Korea ‘locked and loaded’. Gold broke an important down trend line last week around $1265 per troy ounce area and reached as high as $1292 per troy ounce, while yen broke key resistance around 110 per dollar and reached as high as 108.7 per dollar.

As it was reported this week that North Korean supreme leader Kim Jong-Un has delayed a decision to strike the US territory of Guam in the Western Pacific despite the plan being ready and as the South Korean leader Moon Jae-in has weighed in on the crisis by suggesting that there would be no military action without the consent of Seoul, tensions ease. The South Korean President also said that his government would prevent an all-out war by any means necessary and called on the North Korean government to come to the diplomatic table.

Yen has now weakened to 110.4 per dollar, while the yellow metal is trading at $1274 per troy ounce. The weakness of the safe haven assets has led to increased demand for riskier assets.  

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