Gold reached its highest level since November 2016 after recent geopolitical tension incited safe-haven buying

Gold futures edged higher to a 9 1/2 month high on early Tuesday in reaction the rising geopolitical tensions regarding the recent missile launch of North Korea that passed over northern Japan. This incited Japanese investors to buy safe-haven assets such as the bullion. However stocks and the U.S. dollar were on the negative territory amid the tension.

According to Japan and South Korea on the same day, the fired missile by North Korea that landed in the Pacific water of Hokkaido after passing over the Japanese islands added up to the rising tension surrounding the Korean Peninsula last month.

Looking on the prices of gold, U.S. gold futures rose more than 0.5 percent to end at $1,322.20 an ounce for its December delivery. Spot gold was also 0.5 percent higher on Tuesday and settled at $1,316.66 an ounce. Spot notched its best level since November on the previous session as it jumped as high as 1.4 percent to finish at $1,322.33 an ounce.

Also this day, the U.S. dollar notched its level since April 18 versus the Japanese yen. It is already given that a weaker dollar is good for the yellow metal because it makes the non-yielding bullion cheaper for holders outside the United States, which will further strengthen the demand.

The very first diamond futures contract in the world was launched last Monday by the Indian Commodity Exchange (ICEX). This is to give global exporters a hedging tool.


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