Gold climbed to its highest point since mid-June, pushing up mining-company shares amid military tensions between the United States and North Korea.Leonhard Foeger/Reuters
Gold climbed to its highest point since mid-June, pushing up mining-company shares amid military tensions between the United States and North Korea.
Equities slid and the Swiss franc and some developed-market government bonds advanced as U.S. President Donald Trump threatened North Korea with "fire and fury" following a series of missile tests by the totalitarian regime, boosting demand for haven assets. Gold also climbed after Indian imports of the metal were said to have doubled.
The U.S.-North Korea tensions add to investor angst that has helped push up gold more than 11 per cent this year, even with equities hitting records and the U.S. Federal Reserve keen to shrink its balance sheet. Should geopolitical tensions intensify, gold is likely to be in demand as a haven, according to analysts at Commerzbank AG.
"The threat has escalated and investors are rushing from equities back into precious metals for safety," Phil Streible, senior market strategist at RJO Futures in Chicago, said in a telephone interview. "It seems the U.S. is one step closer to engaging in military conflict with North Korea."
Gold futures for December delivery climbed 1.3 per cent to settle at $1,279.30 (U.S.) an ounce on the Comex in New York. Prices earlier rose to $1,282.40 an ounce, the highest since June 14.
An index of 15 gold miners tracked by Bloomberg Intelligence climbed 1.1 per cent, led by Toronto-based Yamana Gold Inc. Randgold Resources Ltd. and Barrick Gold Corp. were among the best performers, each gaining more than 2 per cent.
In India, the world's second-largest buyer of gold, July imports rose after the arrival of some delayed shipments that were booked ahead of the implementation of a new national goods and services tax, according to a person familiar with the information.
Silver futures for September delivery on the Comex rose 2.9 per cent, the biggest gain for a most-active contract since November. Platinum advanced on the New York Mercantile Exchange, while palladium declined.