Investing.com – Gold prices continued to climb on Friday, as geopolitical tensions between the U.S. and North Korea kept safe-haven demand elevated while data showing July inflation undershot expectations, lessened the prospect of a rate hike this year.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange rose $3.40, or 0.26%, to $1,293.37 a troy ounce.
U.S. President Donald Trump issued a new threat to North Korea, saying American weapons were "locked and loaded" as Pyongyang accused him of driving the Korean Peninsula to the brink of nuclear war.
Trump’s latest salvo to threats from North Korea, stoked investor demand for safe-haven gold, lifting gold prices to its biggest weekly gain in four months.
Also underpinning a move higher in the precious metal, was data showing a continued slowdown in the pace of inflation as consumer prices rose less than expected in July.
The Labor Department said on Friday the Consumer Price Index (CPI) edged up 0.1% last month after being unchanged in June. That lifted the year-on-year increase in the CPI to 1.7% from 1.6% in June.
Economists had forecast the CPI rising 0.2% in July and climbing 1.8% year-on-year.
The downbeat inflation data added to growing expectations the Federal Reserve may abandon its plan to hike rates later this year, after the central bank left its benchmark rate unchanged in June, citing concerns over the stuttering pace of inflation.
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, silver futures rose 1.01% to $17.034 while platinum futures rose by 0.36% to $990.15.
Copper traded at $2.912, down 0.25%, while natural gas tacked on 0.23% to $2.991.