By Gaurav Sharma
The ongoing war of words between US President Donald Trump and North Korea’s Kim Jong Un, and their subsequent ratcheting up nuclear tensions, triggered a surge in the price of gold on Thursday (10 August), as safe-haven seeking investors flocked to buy the yellow metal.
At 12:18pm BST, the Comex gold futures contract for December delivery was up 0.60% or $7.70 to $1,287 an ounce, as the precious metal extended overnight gains, of nearly 2% stateside, with yet another rally in Asia and Europe.
Away from the futures market, London-based gold bullion traders also reported brisk buying by international investors.
At 12:38pm BST, spot gold was selling at $1,280.80 an ounce, up 0.27% or $3.50, holding firm near two-month highs for the physical market in both London and Dubai.
Josh Saul, chief executive officer of London-based Arabian Pure Gold, which is among the bullion merchants reporting incremental trading, said: “We’ve seen a 64% increase in people purchasing physical gold for the first time in recent sessions citing the breakdown of international relations.
“Many fear that as a US ally, the UK is also susceptible to being dragged into an unnecessary and unwanted conflict. We see many of our new enquiries and clients using the opportunity to protect themselves against an uncertain future, especially given the unpredictability of both President Trump and Kim Jong-Un.”
Other precious metals are also registered intraday upticks. At 12:37pm BST, the Comex September silver futures contract was up 1.29% or 22 cents to $17.08 an ounce, while spot platinum rose 0.34% or $3.30 to $978.75 an ounce.
Fawad Razaqzada, technical analyst at FOREX.com, said geopolitics will continue to dominate investor sentiment over the short-term.
“Gold and silver are higher thanks mainly to their status as safe-haven commodities. It would be ideal for the precious metals if the dollar were to weaken again now, and that could happen courtesy if US economic data is weaker.
“Both precious metals are looking increasingly bullish from a technical standpoint, but gold has drifted higher of late, breaking many resistance levels in the process. The big buy stop orders will be resting above $1,295; I therefore think that gold will probe the resting liquidity above $1,295 in the coming days.”
Source: International Business Times
