Gold Prices Climb as Tension after North Korea Missile Report Returns

Prices of Gold

Gold prices went up on Monday trade, rising further from its two-month low as renewed tensions over North Korea’s long-range missile ambitions kept the precious metal in demand and weighed over the dollar.

Spot gold went up 0.3 percent to $1,278.81 per ounce holding its gains from last week.

U.S. gold futures for December delivery climbed 0.5 percent to $1,281.50 per ounce.

Gold has gained $7 on Friday, rebounding from its two-month low after Russian state media reported that North Korea was preparing to test a long-range missile which could reach the west coast of the U.S.

State media reported on Sunday that North Korean leader Kim Jong Un stated that his nuclear weapons were a “powerful deterrent” that ensured its sovereignty, just hours after U.S. President Donald Trump said that “only one thing will work” in dealing with the isolated country.

The dollar remained steady against the yen on Monday after retreating from its 12-week highs set last week, due to the revival of focus from geopolitical risks from North Korea.

U.S. employment declined in September, the first time in seven years as the Hurricanes Harvey and Irma caused displaced workers temporarily unemployed and delayed hiring.

The Federal Reserve responded to the tight labor markets by gradually increasing interest rates or risk halting economic recovery, as said by a hawkish Federal Reserve official.

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