Investing.com - The shares of most U.S. gold miners were higher on Monday, getting a boost from gold’s ascent as North Korea’s latest missile test sent investors on another flight to safety.
North Korea fired a ballistic missile over Japan early Tuesday (local time), and leaders from Japan and the U.S. have already voiced their concerns over this latest show of force.
Japan’s Prime Minister Shinzo Abe said the missile was “an unprecedented, serious and grave threat to Japan.” He added that he will ask the United Nations to increase the pressure on North Korea. U.S. President Donald Trump responded by saying 'all options on table’ when it comes to dealing with Pyongyang.
In times of uncertainty, investors flock to safe haven investments, and gold, perhaps the most classic safe haven investment was seeing renewed buying interest on Tuesday. Spot gold shot up 1% in the immediate aftermath of the missile launch to trade around $1,322, a 9-month high. At last check, gold futures were fractionally higher, up 0.4% at $1,320.30.
Gold futures have gained 15% so far this year, despite the U.S. Federal Reserve’s monetary tightening and a relatively strong U.S. dollar. A big factor behind gold’s rally is increased investor appetite for safe haven investments over concerns that North Korea's missile tests would lead to a war.
On Tuesday, U.S. listed gold miners were benefiting from climbing gold prices. Agnico Eagle Mines Limited (NYSE:AEM) was leading the way, but shares of Barrick Gold Corporation (NYSE:ABX), Yamana Gold Inc (NYSE:AUY), and Kinross Gold Corporation (NYSE:KGC) were also higher.