Investing.com - Gold prices jumped to a one-month peak on Wednesday, as investors sought refuge after North Korea said it had conducted a successful nuclear test and as tensions between Saudi Arabia and Iran continued to mount.
Gold for February delivery on the Comex division of the New York Mercantile Exchange tacked on $4.30, or 0.4%, to trade at $1,082.70 a troy ounce as of 09:40 GMT, or 4:40AM ET. It earlier rose to $1,085.10, the most since December 7. On Tuesday, gold inched up $3.20, or 0.3%.
Risk sentiment weakened after North Korea confirmed that it had conducted a nuclear test and said that it won't give up nuclear capability unless U.S. abandons its hostile foreign policy towards the country.
Markets were also jittery amid growing tensions between Iran and Saudi Arabia, following the execution of a prominent Saudi Shia cleric.
The yellow metal is up 2% so far this week as market players sought refuge amid instability in the Middle East and fresh concerns over global growth.
Also on the Comex, silver futures for March delivery inched up 0.4 cents, or 0.03%, to trade at $13.97 a troy ounce during European morning hours.
Elsewhere in metals trading, copper prices edged lower on Wednesday, after data showed that activity in China's services sector grew at the slowest pace in 17 months in December, the latest indication that the world's second-largest economy may be losing steam.
The Caixin services purchasing managers' index fell to 50.2 last month from November's reading of 51.2, disappointing expectations for an uptick to 52.3.
The report came after a similar survey earlier in the week showing that Chinese manufacturing activity contracted for the tenth straight month in December, and added to fears over the outlook for the world’s number two economy.
The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.