⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

Commodities - Gold Prices Move Higher as Geopolitical Risks Resurface

Published 09/15/2017, 03:02 AM
© Reuters.  Gold prices bounce back on North Korean provocation
XAU/USD
-
XAG/USD
-
DX
-
GC
-
SI
-

Investing.com - Gold prices prices moved higher on Friday, as geopolitical risks emerged following news North Korea executed a new missile test, bringing once again to the forefront ongoing tensions between the peninsula and the rest of the world.

Comex gold futures were up $4.65 or about 0.36% at $1,333.85 a troy ounce by 03:00 a.m. ET (07:00 GMT).

Demand for safe-haven assets strengthened following news North Korea fired a missile over Japan into the Pacific Ocean late Thursday. It was the peninsula's second missile launch over Japanese territory in just over two weeks.

Japan reacted by saying that Pyongyang has “no bright future” and called for an emergency meeting of the U.N. security council.

U.S. Secretary of State Rex Tillerson called for the international community to take “new measures” against North Korea, singling out Russia and China as the countries best placed to apply pressure on the regime.

Gold prices had briefly weakened on Thursday after the U.S. Commerce Department reported that consumer price inflation rose more than expected in August.

The strong inflation data added was seen as increasing the chances of an additional rate hike by the Federal Reserve this year.

A separate report showed that initial jobless claims unexpectedly declined to 284,000 last week.

Investors were eyeing reports on U.S. retail sales, industrial production and consumer sentiment, due later Friday for further indications on the strength of the economy.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, wassteady at 92.09 on Friday morning.

Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.

Elsewhere on the Comex, silver futures gained 0.37% to $17.83 a troy ounce.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.