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Gold continues higher as North Korea tensions linger

Published 10/08/2017, 08:13
Updated 10/08/2017, 08:20
Gold climbs to fresh 2-month peak on North Korea tensions
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Investing.com - Gold prices continued higher on Thursday, adding to their biggest one-day gain in three months amid simmering geopolitical tensions between the U.S. and North Korea.

Comex gold futures rose to a daily peak of $1,285.60 a troy ounce, a level not seen since June 8. It was last at $1,284.37 by 3:10AM ET (0710GMT), up $5.00, or around 0.4%.

The yellow metal scored its sharpest daily rise since mid-May on Wednesday as investors piled into safe haven assets amid intensifying tensions between the U.S. and North Korea, with Pyongyang saying it is considering plans to attack Guam.

A spokesman for the Korean People's Army said in a statement that it was "carefully examining" plans for a missile attack on the U.S. Pacific territory, which has a large American military base.

The comments came after U.S. President Donald Trump warned North Korea that any threat to the U.S. would be met with "fire and fury".

Meanwhile, investors looked ahead to a key batch of U.S. economic data to gauge how it will impact the Federal Reserve's view on monetary policy.

Reports on producer prices and weekly jobless claims are both due at 8:30AM ET (1230GMT).

Comments from New York Fed President William Dudley will also be in focus. He is due to speak at 10AM ET (1400GMT) about wage inequality in his region. Dudley's comments will be scrutinized to gauge whether the Fed's view on low inflation appears to be transitory or a longer term problem.

Gold has been well-supported in recent weeks as fading expectations for a third Fed rate hike this year due to weak inflation combined with deepening political turmoil in the White House boosted the appeal of the precious metal.

Elsewhere on the Comex, silver futures gained 15.6 cents, or around 1%, to $17.01 a troy ounce, the highest since June 15.

Among other precious metals, platinum was up 0.2% at $977.65, while palladium added 0.1% to $892.65 an ounce.

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