Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Commodities - Gold Finds Support as U.S.-N.Korea Tensions Escalate

Published 2017-09-22, 03:10 p/m
Updated 2017-09-22, 03:16 p/m
© Reuters.

© Reuters.

Investing.com – Gold prices rose on Friday amid an uptick in safe-haven demand as North Korean leader Kim Jong Un vowed to make a "mentally deranged" Trump pay dearly for an earlier threat to “totally destroy” North Korea if threatened.

Gold futures for December delivery on the Comex division of the New York Mercantile Exchange rose by $5.95, or 0.46%, to $1,300.75 a troy ounce.

U.S. – North Korea relations further strained on Friday, fueling demand for safe-haven gold after North Korea said it might test a hydrogen bomb over the Pacific Ocean.

The prospect of North Korea carrying out yet another act of provocation comes amid Kim Jong Un’s brazen pledge to make a "mentally deranged" Trump pay dearly for an earlier threat to “totally destroy” North Korea if it threatened America or its allies.

The uptick in safe-haven demand, however, is unlikely to rescue the pressure metal from a second-straight weekly loss, following a surge in expectations for a year-end Federal Reserve rate hike.

The Federal Reserve indicated that its members’ rate-hike outlook saw rates rising to between 1.25% and 1.5% by the end of the 2017. With rates steady at 1-1.25%, that points to one further rate hike this year.

According to investing.com’s fed rate monitor tool more than 70% of traders expect the Federal Reserve to hike rates in December.

Gold is sensitive to moves higher in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.

In other precious metal trade, silver futures gained 0.12% to $17.04 a troy ounce while platinum futures lost 0.62% to $934.10.

Copper traded at $2.94, up 0.29% while natural gas rose by 0.31% to $2.96.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.