Gold climbed to the highest since mid-June, pushing up mining-company shares amid military tensions between the U.S. and North Korea.
Equities slid and the Swiss franc and some developed-market government bonds advanced as President Donald Trump threatened North Korea with “fire and fury” following a series of missile tests by the communist regime, boosting demand for haven assets. Gold also climbed after Indian imports of the metal were said to have doubled.
The U.S. North-Korea tensions add to investor angst that has helped push up gold more than 11 percent this year, even with equities hitting records and the Federal Reserve keen to shrink its balance sheet. Should geopolitical tensions intensify, gold is likely to be in demand as a safe-haven, according to analysts at Commerzbank AG.
“The threat has escalated and investors are rushing from equities back into precious metals for safety,” Phil Streible, senior market strategist at RJO Futures in Chicago, said in a telephone interview. “It seems the U.S. is one step closer to engaging in military conflict with North Korea.”
Gold futures for December delivery climbed 1.3 percent to settle at $1,279.30 an ounce at 1:35 p.m. on the Comex in New York. Prices earlier rose to $1,282.40 per ounce, the highest since June 14.
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