Economy & Markets

Growing tensions between U.S. and North Korea drove the price of the precious metal upward and stock markets downward

By Canadian Press |
Source: The Canadian Press

Major North American indices fell on Wednesday and investors flocked to gold amid growing tensions between the U.S. and North Korea.

The Toronto Stock Exchange's S&P/TSX composite index was down 39.02 points to 15,217.33 in a broad-based decline that saw many sectors finish in the red while bullion stocks surged almost 1.9%.

The December gold contract was ahead US$16.70 to US$1,279.30 an ounce.

The precious metal is usually seen as a safe haven to investors at a time of geopolitical uncertainty.

With U.S. President Donald Trump warning North Korea of "fire and fury," some investors have become concerned that the war of words between the two countries could escalate.

In New York, the Dow Jones industrial average fell 36.64 points to 22,048.70, the S&P 500 index inched down 0.90 of a point to 2,474.02 and the Nasdaq composite index lost 18.13 points to 6,352.33.

The Canadian dollar was trading at an average price of US78.71¢, down 0.20 of a U.S. cent.

Elsewhere in commodities, the September crude contract was up US39¢ to US$49.56 a barrel, September natural gas advanced US6¢ at US$2.88 per mmBTU and September copper declined US2¢ at US$2.93 a pound.