International
GOLD prices are on the rise again amid growing tensions between the US and North Korea.
On Monday 9 October, following a four-week dip, the gold price rose by more than $US10 up to $US1285, following the weekend’s war of words between Washington and Pyongyang.
Reports from Russia, which claimed North Korea was preparing to test a long-range missile that could reach the US, impelled a flurry of investors to turn to the safe haven asset.
A series of tweets made by US President Donald Trump on 7 October also caused a stir.
“Presidents and their administrations have been talking to North Korea for 25 years, agreements made and massive amounts of money paid hasn’t worked, agreements violated before the ink was dry, makings fools of U.S. negotiators. Sorry, but only one thing will work,” Mr Trump tweeted.
What that “one thing” Mr Trump refers to remains unknown, but nonetheless, investors took the bait.
North Korea’s leader Kim Jong Un, in a speech to the North Korea’s Central Committee of the ruling Workers’ Party, described his nuclear weapons program as a “treasured sword” protecting the country’s independence.
On 12 October gold prices swelled further to $US1297.40, the highest since 25 September, as minutes released from a September Federal Reserve meeting turned attention to US inflation figures.
“The market is looking for a little direction and there’s not much on the horizon until we get more geopolitical conflict or we see interest rates pick up,” U.S. Bank Wealth Management senior investment strategist Rob Haworth told Reuters.