The spot gold price climbed during Asian morning trading on Monday October 9 as news emerged that North Korea may be about to test a new long-range missile capable of reaching the west coast of the USA, stoking haven demand for the yellow metal.
The spot gold price was recently quoted at $1282.85-1283.25 per oz, up by $6.40 as of 06:30 BST today. Trade has ranged from $1,275.35-1,285.50 so far today.
- Renewed tension in the Korean peninsula saw gold prices climb this morning, as investors opt for safer assets.
- The heightened geopolitical risk has also weighed on the dollar this morning, but expectations of a US rates rise in December continue to provide support for the currency.
- The dollar index was down 0.01% to 93.76 as of 6:47 BST.
- “Down but not out best describes golds price action on Friday. Having sold off to a low at $1,260.00, gold staged a remarkable $18 comeback to close at 1278.00 as news emerged that North Korea may be about to test a new missile capable of reaching the USA. The rally has continued this morning with gold moving to $1,284.50 as China returns from holiday. Iranian sabre rattling, Trump remarks on North Korea and further details of the proposed missile test have injected a geopolitical risk premium back into the yellow metal,” Jeffrey Halley, senior market analyst at Oanda said.
- “Admittedly gold was approaching a technically oversold condition in the short term anyway. The key now will be if the rally can maintain its longevity once the dust settles and in the face of higher US yields and a stronger US dollar,” Halley added.
Silver, PGMs
- In the other precious metals, the spot silver price was up by $0.150 to $16.935-16.955 per oz.
- Platinum was $7 higher at $918-923 per oz, while palladium rose $8 to $925-$930 per oz.
- On the Shanghai Futures Exchange, gold for December delivery was at 277.35 yuan ($41.7) per gram, and the December silver was at 3,911 yuan per kg.
Currency moves and data releases
- The dollar index was down 0.01% to 93.76 as of 6:47 BST.
- In other commodities, the Brent crude oil spot price was up 0.36% to $55.70 per barrel, and the Texas light sweet crude oil spot price increased 0.43% to $49.36.
- In equities, the Shanghai Composite was up 1.17% to 3,388.
- In data today, China released the Caixin Composite Output Index this morning, which covers manufacturing and services companies. The index fell to 51.4 in September from 52.4 in August, also marking a three-month low. Meanwhile, China’s Caixin General Services Business Activity Index declined to 50.6 last month from 52.7 in August, the worst reading since December 2015.
- The economic agenda is light today with German industrial production and EU Sentix investor confidence due.
The post Gold climbs on renewed North Korea concerns appeared first on The Bullion Desk.
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Source: Bullion Desk News
