Gold prices jumped to a 2-month peak Thursday, extending recent gains as the war of words between the U.S. and North Korea escalated.
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North Korea state media warned its missiles could surround the U.S. territory of Guam in an “enveloping fire” in coming weeks.
“Sound dialogue is not possible” with President Donald Trump they said. “The U.S. president at a [golf] links again let out a load of nonsense about ‘fire and fury,’ failing to grasp the on-going grave situation.”
Gold is considered a safe haven asset in times of uncertainty.
December gold settled up $10.80, or 0.8%, at 1,290.10/oz.
Gold rose despite tame inflation numbers. Reflecting a drop in prices for services, the Labor Department released a report on Thursday showing an unexpected decrease in U.S. producer prices in the month of July.
The producer price index for final demand edged down by 0.1 percent in July after inching up by 0.1 percent in June. Economists had expected another 0.1 percent uptick.
First Seen on RTTNews