Gold, Yen Climb to 5-Month Highs as Refuges Seek Havens

Ed. Note: This article first appeared in Bloomberg

The yen and gold rallied to five-month highs while Treasury note yields approached the lowest levels of the year as investors sought out traditional havens from geopolitical risks. The U.S. equity market’s standard fear gauge rose to the highest since Nov.

The yen rose versus all of its G-10 peers as U.S. Secretary of State Rex Tillerson said during a Group of Seven meeting in Italy that Russia must abandon its support of Syrian President Bashar al-Assad’s regime.

Tensions also remain high in Asia after President Trump said on Twitter that “North Korea is looking for trouble,” and that the U.S. would “solve the problem” with or without China.

While the S&P 500’s drop at the opening was small, it was quite broad, with as much as 89% of stocks in the index declining.

The widespread selling sent the the CBOE Volatility Index, or VIX, to the highest level since the U.S. presidential election.

Posted by: The Trust Advisor


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