Investing.com – Gold prices rose to a more-than-one month high on Monday buoyed by an uptick in safe-haven demand amid reports suggesting North Korea was preparing to launch a missile as part of its army’s winter training regime.
for December delivery on the Comex division of the New York Mercantile Exchange rose by $7.64, or 0.34%, to $1295.12 a troy ounce.
A Japanese diplomat warned on Monday that radio signals detected from the North Korea indicated another North Korean missile test was close, fuelling demand for safe-haven gold.
“There is a possibility of missiles launches in the next few days,” a Japanese government official said on Monday, according to Japan’s Kyodo news agency. The potential of fresh missile launches from the Kim Jong-un led nation is believed to be part of the North Korea army’s winter training regime.
Also supporting the uptick in gold prices was ongoing flattening in the yield curve as the yield spread between long-term and short-term bonds continued to narrow. A flattering yield curve usually indicates uncertainty over long-term economic growth. Investor concerns over flattening in the yield curve comes as markets await Jerome Powell’s appearance before Congress on Tuesday.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
In other precious metal trade, rose 0.19% to $17.04 a troy ounce, while added 0.50% to $950.
traded at $3.13, down 1.86%, while fell by 3.50% to $3.02.
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Source: Investing.com
