Gold rises as N Korea prepares for missile test

Bloomberg

Investor angst over Kim Jong Un is helping gold get its groove back.
Bullion rose, trimming a weekly loss, after Russia’s state news service quoted Russian legislator Anton Morozov as saying North Korean officials are planning a new test soon of a missile capable of reaching the US West Coast. Geopolitical tensions are reviving haven demand for the precious metal after earlier economic data bolstered the case for higher interest rates, hurting non-interest bearing gold.
While political uncertainty persists, traders are still pricing a 79 percent chance that the Federal Reserve will boost borrowing costs by December, up from 29 percent a month earlier, according to fed funds futures data compiled by Bloomberg.
“Saber-rattling helps gold and brings the worriers back,” George Gero, a managing director at RBC Wealth Management, said. “It’s a long-term uncertainty about what, if anything, can happen with North Korea going forward.”
Gold for immediate delivery gained 0.4 percent to $1,273.05 an ounce at 2:25 pm in New York, after sliding to the lowest since August 9. Prices slid when the Labor Department report showed wage gains in the US accelerating.
Russia’s Mozorov told RIA Novosti that North Korean officials gave calculations that, in their view, showed that they would be able to hit the West Coast of the US with their missile.

Leave a Reply

Send this to a friend