Gold prices up

BENGALURU. — Gold prices climbed to their strongest level in more than a week yesterday as renewed concerns over North Korea's nuclear ambitions stoked safe-haven demand for the precious metal and weighed on the dollar.

Spot gold was up 0,4 percent at $1 279,99 an ounce by 0705 GMT, after earlier touching $1 284,97, its highest level since September 29.

US gold futures for December delivery gained 0,6 percent to $1 282,40 per ounce.

The dollar held steady against the yen, having retreated from 12-week highs set last week, due to a renewed focus on geopolitical risks amid concerns that North Korea may be preparing another missile test.

“This is really arbitrage driven, and the Chinese having come back and trading the difference between the arbitrage,” a Hong Kong-based trader said, adding that developments over the weekend concerning North Korea provided support for gold.

Chinese markets reopened yesterday after a week-long National Day holiday.

Geopolitical risks can boost demand for safe-haven assets such as gold and the Japanese yen.

North Korea's leader Kim Jong Un said his nuclear weapons were a “powerful deterrent” that guaranteed its sovereignty, hours after US President Donald Trump said “only one thing will work” in dealing with the isolated country.

Gold might face initial resistance at around $1 285, the trader said.