Gold prices on the European market rose on Thursday to widen their gains for a third consecutive day, the highest level in two months, as the purchase of the metal as a safe haven continued as geopolitical tensions on the Korean Peninsula escalated.
Gold prices rose by 9:54 GMT is 1279.10 USD an ounce from the opening level of 1277.05 USD, and recorded a high of 1280.55 USD, the highest since June 14, and the lowest 1274.65 USD.
Gold prices ended yesterday’s trading up 1.3 %, the second daily gain in a row, and the biggest daily gain since May 17, as safe haven assets accelerated amid a decline in risk appetite in the financial markets.
The geopolitical tensions on the Korean Peninsula have escalated, especially after recent statements by US President Donald Trump that any threat to the United States would be met with fire and anger. North Korea responded by announcing plans to launch a missile attack on the Pacific island of Guam .
The South Korean army warned Boeing on Thursday that it would face a strong response if it launched a missile attack on Guam.
Meanwhile, investors are expected to see further evidence on the future of US monetary policy, with the release of the US PPI as a leading indicator of inflation levels in the country, as well as comments by Federal Reserve member William Dudley.
Charles Evans, head of the Federal Reserve in Chicago, said it was reasonable to announce the beginning of a reduction in the central bank’s balance sheet next month and warned that disappointing inflation data could delay interest rate increases.
Gold holdings in the SPDR Gold Trust Fund The world’s largest gold-backed fund was unchanged yesterday for a second consecutive day at 786.87 metric tons, its lowest level since March 1, 2016