Geopolitical tensions drive Gold prices near $1300

Gold prices rose last week around 300 pips amid rising tensions between the United States and North Korea after the North responded to warnings from US President Donald Trump with a threat to strike the US territory of Guam. With tensions mounting between the United States and North Korea, investors have been moving into the precious metal and other safe haven trades. Gold testing 2-month peaks in levels just shy of the critical barrier at $1,300. Spot gold rose 3 per cent to $1,286 per ounce.
Volatility spread across asset classes on Thursday, as the CBOE volatility index spiked to its highest level since May, gold prices rose to two-month highs and all major U.S. equity indices closed lower, with the S&P 500 falling by 1.45 percent. The US administration is looking to seek a diplomatic resolution with North Korea and there is a notable reaction today on markets, with gold and the yen lower, equities higher, whilst US Treasury yields have also picked up.


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