Materials Lower, Gold Up in Wake of North Korea Test -- Materials Roundup

Features Dow Jones Newswires

Shares of commodities producers fell as a North Korean bomb test caused a flight from risky holdings such as industrial metals into safe havens such as Treasury bonds and gold.

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Increases for bulk commodities including iron ore and metallurgical coal last week generated strong returns for mining stocks, said analysts at brokerage Credit Suisse, in a research note.

Gold futures, which often grow in popularity during times of geopolitical crisis, neared their highs of the year, adding 1% to close above $1344 an ounce.

Another support for the precious metal was the statement by Federal Reserve Governor Lael Brainard advocating caution on rate increases until policy makers are confident of overcoming the "persistent failure" to reach 2% inflation.

Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

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September 05, 2017 17:02 ET (21:02 GMT)