Investing.com - Gold prices hovered near one-year highs on Wednesday, as heightened tensions between the U.S. and North Korea continued to dominate market sentiment and support demand for safe-haven assets.
Comex gold futures were little changed at $1,344.90 a troy ounce by 08.35 a.m. ET (12:35 GMT).
The precious metal strengthened after a North Korean diplomat on Tuesday warned that his country was ready to send "more gift packages" to the U.S.
The threat came after the rogue regime conducted its sixth and largest ever nuclear test on Sunday, prompting U.S. Defense Secretary James Mattis to say that any threat to the U.S. or its allies would be met with a “massive military response”.
The precious metal also benefited from a weaker U.S. dollar after Federal Reserve official Lael Brainard said on Tuesday that the central bank should delay raising interest rates until it is confident inflation that is now "well short" of target will rebound.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.10% at 92.19.
Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.
Elsewhere on the Comex, silver futures gained 0.8 cents or about 0.44% to $18.02 a troy ounce.