Geopolitical tensions are back and the Korean Peninsula is once again in the headlines. As expected, this has started Risk OFF mode, which positively influences precious metals, CHF, and JPY, and negatively affects the EM currencies and stocks.
Gold is having a great month. The North Korea problem is just the icing on the cake here as the XAUUSD was showing some strong upwards movement just two days before. At first, this was because of the weaker USD after the Jackson Hole Symposium, and then because of the Stop Loss orders getting activated after breaking the 1300 USD/oz resistance. The next target is 1380 USD/oz.
Silver is in a worse position than gold, but still positive. Here, we broke the long-term upwards trend line, which opens the way for us to test the 18.50 USD/oz resistance.
USDJPY broke the 108.7 support and went on to test the lows of April. A bounce here will be the last chance for buyers to keep above the surface. Going below that level would be a signal of a much stronger drop aiming at the lows from 2016.