Gold Hits Two-month High as North Korea Worries Drive Haven Demand
Spot gold touched $1,286.40, highest level since June 8
London: The price of gold climbed to the highest levels in two months on Thursday as the United States and North Korea exchanged more threats, prompting investors to buy bullion as a safe haven asset.
“For now, the uptrend is very much intact in gold, reacting to external geopolitical events,” said Jonathan Butler, commodities analyst at Mitsubishi.
The spot gold price was up 0.7% at $1,286.07 per ounce by 1400 GMT, after hitting an earlier high of $1,286.40, its highest level since June 8. The price rose 1.3% in the previous session, the biggest gain since mid-May.
US gold futures for December delivery climbed 1% to $1,291.80.
Gold extended gains after data showed US producer prices unexpectedly fell in July, recording their biggest drop in nearly a year and pointing to a further moderation in inflation that could delay a Fed rate increase. The market was waiting for US consumer inflation data on Friday that would offer more clues about future Fed decisions. The $1,279 area is a key technical level, representing a downtrend that has been in force since mid-2016 when gold surged to a two-year peak of $1,374.91.
Speculative positions in US gold futures remain subdued, said UBS strategist Joni Teves.