Investors flocked to gold Wednesday against the backdrop of rising tensions between the U.S. and North Korea, offsetting some of the broad-based declines on the commodity-heavy Toronto stock index. "The fear trade, which is the gold trade, has helped buoy the Toronto Stock Exchange," said Allan Small, a senior investment advisor at Holliswealth. "When there's fear in the world, if there's some sort of pending or possible negative event, people buy gold." Some investors are on edge after U.S. President Donald Trump warned North Korea of "fire and fury." Secretary of State Rex Tillerson later insisted the U.S. isn't signalling it's about to mete out a military response despite threats from North Korea suggesting it could attack Guam, a U.S. island territory in the Pacific.

Source: CBC News August 09, 2017 17:26 UTC