Safe havens remain well bid in Asia on heightened NKorea tensions

The traditional safe havens - Gold and Yen - remain well bid against the US dollar this Monday morning in Asia as the investors continue to pour money into the safe haven assets amid rising North Korea tensions.

The Japanese Yen rose to a five-month high against the US dollar (USD/JPY hit a low of 108.23). The pair is trading below the 200-DMA for the first time since November 11. Meanwhile, gold is just a whisker away from the psychological level of $1300.

Despite North Korea’s failed missile launch, the tense standoff between the US and North Korea over the rogue state's nuclear weapons program continues. Washington has warned the crisis is coming to a head and insists Pyongyang would not be allowed to threaten its neighbours.

As per Reuters report, “The US, its allies and China are working together on a range of responses to North Korea's latest failed ballistic missile test, U.S. President Donald Trump's national security adviser said on Sunday.

Major European markets are closed on account of the Easter Monday holiday. However, the decline in the treasury yields, coupled with the strength in the other safe haven assets as noted earlier, suggests the risk-off tone could worsen as the week progresses.