Investing.com - Gold prices scored robust gains on Wednesday, after President Donald Trump warned North Korea it would be "met with fire and fury" if it continued to make threats against the U.S.
His comments came on the back of a report that the hermit state had created a miniaturized nuclear weapon that could fit in its missiles.
Just hours after Trump's warning, Pyongyang replied it was "carefully examining" a plan to strike Guam, where a U.S. military base is located.
The escalating tension prompted investors to shun riskier assets, such as stocks and high yielding currencies, and flock to traditional safe haven assets like the yen, Swiss franc and gold.
Comex gold futures jumped $11.40, or around 0.9%, to $1,274.11 a troy ounce by 3:10AM ET (0710GMT).
The yellow metal settled slightly lower on Tuesday, after touching its weakest level since July 26 at $1,257.10, after JOLTs data showed a record amount of job openings.
With no major economic reports on Wednesday's calendar, market players looked ahead to monthly inflation indicators due later in the week for fresh clues on the timing of the next Fed rate hike.
A report on U.S. producer prices for July is due out on Thursday and the consumer price inflation report will be released on Friday.
The yellow metal has been well-supported in recent weeks as fading expectations for a third Fed rate hike this year combined with deepening political turmoil in the White House boosted the appeal of the precious metal.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Elsewhere on the Comex, silver futures gained 20.5 cents, or around 1.3%, to $16.59 a troy ounce.