Gold Beats U.S. Stocks as North Korea Worries Drive Haven DemandBy and
Price has advanced 12% this year, touching highest since June
U.S. allies warn North Korea against firing missiles at Guam
Gold is beating U.S. stocks this year as a war of words between President Donald Trump and North Korea, along with a weaker dollar, boosts demand for haven assets.
Bullion has climbed 12 percent in 2017, overtaking the S&P 500 index of leading U.S. stocks as Japan and South Korea warned the North Korean dictatorship it faces a strong response if it follows through on threats to launch a missile toward the U.S. territory of Guam. Gold for immediate delivery rose 0.6 percent to $1,285.29 an ounce by 2:56 p.m. in New York after touching $1,287.92, the highest since June 8.
There’s “still a risk that it may fail at $1,295 once again,” Ole Hansen, head of commodity strategy at Saxo Bank A/S, said by email. “However, a break would force funds to step in considering the relative low exposure they currently hold.”
Gold hovered around $1,296 in April and June before falling back.
- NOTE: U.S. allies warn North Korea against firing missiles toward Guam
- NOTE: Trump goes with gut to shake up strategy toward North Korea
- “Prices received a fillip from a rise in geopolitical tensions surrounding North Korea, with both Kim Jong Un and President Trump adopting a more aggressive stance,” said John Sharma, an economist at National Australia Bank
- Spot silver +0.9% to $17.0985/oz after +3% on Wednesday
- Heading for highest close since June
- Platinum +0.7 at $981.98/oz
- Metal has rallied for 10 days, longest run since 2012
- Palladium +1.1% to $901.46/oz
— With assistance by Susanne Barton