Stocks plunge amid growing North Korean-U.S. tensions, gold continues rise

The Canadian Press</span>
Published Thursday, August 10, 2017 11:45AM EDT
Last Updated Thursday, August 10, 2017 5:10PM EDT

TORONTO -- Stock markets nosedived as investors continued moving into gold amid escalating political tensions between the United States and North Korea.

The S&P/TSX composite index fell 143.08 points to 15,074.25, with nearly all of its sectors moving lower.

In New York, the Dow Jones industrial average plunged 204.69 points to 21,844.01. The S&P 500 index dropped 35.81 points to 2,438.21, while the Nasdaq composite index slid 135.46 points to 6,216.87.

The Vix, a measure of how much volatility investors expect in stocks, jumped to its highest level since May after North Korea revealed a plan to launch ballistic missiles toward a major U.S. military hub in the Pacific.

The price of gold also surged for the second day in a row as the December bullion contract advanced US$10.80 to US$1,290.10 an ounce. The precious metal is often seen as a safe haven for investors during times of uncertainty.

The Canadian dollar was trading at an average price of 78.67 cents US, down 0.04 of a U.S. cent.

Elsewhere in commodities, the September crude contract advanced 20 cents to US$49.76 per barrel and the September natural gas contract was up seven cents to US$2.95 per mmBTU. The September copper contract was down two cents to US$2.91 a pound.

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