Business
11:35, 10-Aug-2017
Gold prices climb to near two-month high as geopolitical tensions rise
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Gold futures on the COMEX division of the New York Mercantile Exchange rose to the highest level in nearly two months on Wednesday amid a war of words between the United States and the Democratic People's Republic of Korea (DPRK).
The most active gold contract for December delivery climbed 16.7 US dollars, or 1.32 percent, to settle at 1,279.30 US dollars per ounce.
Meanwhile, gold price in Hong Kong increased 78 Hong Kong dollars to open at 11,900 dollars (about 1,522.39 US dollars) per tael on Thursday, according to the Chinese Gold and Silver Exchange Society. (1 tael equals 1.323 ounce)
Gold prices rose to near two-month high on geopolitical tension. /Xinhua Photo
Gold prices rose to near two-month high on geopolitical tension. /Xinhua Photo
US President Donald Trump's warning of "fire and fury" if the DPRK continues with its threats and Pyongyang's announcement of a possible strike that targets Guam drove investors away from stocks and other risky assets on Wednesday and into textbook safe-havens assets like gold.
Reuters reported that Trump's remarks earlier this week on how DPRK would face "fire and fury like the world has never seen" weighed on Wall Street.
"Geopolitics splashed cold water on the markets," said JJ Kinahan, chief strategist at TD Ameritrade told Reuters.
The rally came after Tuesday's drop to a two-week low on better-than-expected US jobs data, while investors awaited US inflation figures later this week for further clues about the pace of interest rate rises.
Source(s): Reuters
,Xinhua News Agency