Gold prices soared on Wednesday, August 9, after North Korea said it is considering an attack on the U.S. Pacific territory of Guam, with President Donald Trump warning
Pyongyang that any threat to the United States would be met with “fire and fury”.
The tensions rattled through global markets, sending investors out of equities and into the safety of the yen, Swiss franc, and government debt. The VIX “fear gauge” of expected
volatility on the S&P 500 hit a near month high on Tuesday.
“The market hates uncertainty and that’s certainly what we have now,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Spot gold had risen 0.8 percent to $1,270.49 per ounce by 1215 GMT, while U.S. gold futures for December delivery gained 1.1 percent to $1,276.50 per ounce.
Gold hit a two-week low on Tuesday after U.S. jobs data came in better than expected and the dollar turned positive, while investors awaited U.S. inflation figures later this week for
further clues about the pace of interest rate rises.
A strong dollar makes dollar-priced gold costlier for non-U.S. investors while rising interest rates increase the opportunity cost of holding non-yielding bullion.
Platinum gained 0.6 percent to $972.95 per ounce, having hit its highest since April at $979. Silver rose 1.7 percent to $16.70 per ounce, while palladium fell 0.6 percent to $893.
