Gold price spike extends on US, North Korea nuclear rhetoric

Gold prices rose for the third successive session on Friday as safe-haven seeking investors continued to buy the yellow metal in light of the ongoing war of words between US President Donald Trump and North Korea’s Kim Jong Un, and the subsequent ratcheting up nuclear tensions between both nations.

At 4:36pm, the Comex gold futures contract for December delivery was up 0.26% or $3.30 to $1,293.40 an ounce, as the precious metal extended overnight sessional gains of nearly 2% and 1% on Wednesday and Thursday respectively.

However, some urged caution as gold futures remained at 2-month highs. Jeffrey Halley, a senior market analyst at OANDA, said traders should closely watch the global equities market.

“Further falls and risk aversion likely pumping more safe-haven flows into precious metals.”

FXTM chief market strategist Hussein Sayed said a quick unwinding of prices remains a distinct possiblity, especially if US and North Korean tensions ease quickly, of which there is no sign as of yet.

Earlier in the trading session, President Trump tweeted: “Military solutions are now fully in place, locked and loaded, should North Korea act unwisely. Hopefully Kim Jong Un will find another path!”

The tweet sparked another round of buying, as London and Dubai-based gold bullion traders reported a third day of brisk buying by international investors. At 4:55pm BST, spot gold in London was trading at $1,287.21 an ounce; up 0.10% or $1.87.

The tweet sparked another round of buying, as London and Dubai-based gold bullion traders reported a third day of brisk buying by international investors. At 4:55pm BST, spot gold in London was trading at $1,287.21 an ounce; up 0.10% or $1.87.