Tensions between the U.S. and North Korea drive gold prices up
Following four weeks of continued losses, gold prices finished higher last Friday and followed the upward trend on Monday, with December gold GCZ7, +0.67% rising $8.10, or 0.6%, to $1,283 an ounce.
Rumours around interest rates from Federal Reserve officials, a flare-up in tensions between the U.S. and North Korea and the return of Chinese buyers after a week-long holiday drove the precious metal’s price up.
But the bickering between Washington and Pyongyang was the main reason behind the boost. In particular, investors reacted to reports out of Russia stating that North Korea is preparing to test a long-range missile that has the potential to reach the U.S. West Coast and President Donald Trump’s answer saying that “only one thing will work” in dealing with Kim Jong-un, hinting that military action was on his mind.
…hasn’t worked, agreements violated before the ink was dry, makings fools of U.S. negotiators. Sorry, but only one thing will work!
— Donald J. Trump (@realDonaldTrump) October 7, 2017
On the other hand, December silver SIZ7, +0.80%, added 13.50 cents, or about 0.8%, to $16.92 an ounce. Last week, silver climbed 0.7%.
On the Comex, December copper HGZ7, +0.02% was mostly flat at $3.025 a pound. January platinum PLF8, +0.10% slid $1.60, or 0.2% to $915.10 an ounce, and December palladium PAZ7, +0.88% gained $6.70, or 0.7%, to $925.70 an ounce.