· Gold prices climbed 1 percent to their highest in almost a year on Monday after North Korea’s latest and most powerful nuclear test drove investors towards safe-haven assets.
Spot gold had risen just over 1 percent to $1,338.36 per ounce by 0708 GMT, after earlier touching its strongest level since late September at $1,339.47.
U.S. gold futures for December delivery were up 1 percent at $1,344 an ounce.
· “Gold has rallied following further escalation in geopolitical tensions around North Korea,” said Jameel Ahmad, vice president of Market Research at FXTM.
“This looks like safe-haven buying from traders. These tensions do not look like they are going anywhere, and are likely to encourage investors to hold on to their gold positions,” Ahmad said.
· Investors were also looking ahead to a European Central Bank (ECB) meeting on Thursday.
· Markets are expecting no policy change from the ECB this month but the bank is likely to announce a reduction of its monthly asset purchases in October, according to a majority of economists in a Reuters poll.
· Spot gold may gain more to $1,345 per ounce, as it has pierced a resistance at $1,333, Reuters technical analyst Wang Tao said.
· Silver rose 1 percent to $17.85 an ounce, earlier touching its highest since late April at $17.90 an ounce.
Reference: Reuters
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