Open menu Close menu Menu
Open charts menu Close charts menu Charts
Call us: 0121 369 3000, 7 days, 7am - 10pm
£ $
Live Metal Prices
Metal Ounce Gram
Gold £998.02 £32.09
Silver £13.245 £0.426
Platinum £756.41 £24.32
Palladium £713.60 £22.94

Updated 10:48 17/08/17

Gold jumps as North Korea escalates threat

10 Aug 2017 By Peter Walden

The gold price has risen to its highest level in almost two months as tensions on the Korean peninsula continued to support safe-haven demand. Yesterday, subdued trading globally marked the 10th anniversary of the start of the global financial crisis, after Trump's rhetoric continued to threaten Pyongyang with “fire and fury like the world has never seen” if it continued to make threats against the US, a statement strongly backed by US Defense Secretary James Mattis.

North Korea soon retaliated, making clear its intentions to target Guam waters, a US territory in the Pacific Ocean, with missiles that could be ready within days. Furthermore, US intelligence reported that North Korea had indeed produced a miniaturised nuclear warhead earlier this week. The report came soon after a unanimous decision last weekend to impose tough UN sanctions designed to cut off almost a third of North Korea’s $3 billion annual export revenue.

Overall market conditions for gold seem bullish. Geopolitical tensions will continue to have an important short-term impact on precious metal prices. Looking forward, more long-term economic factors - such as increasing debt bubble fears - interest rate rises and further Brexit uncertainty may start to come into view, with the potential to push gold higher. In the last month, the gold price has jumped almost 5% to £989 an ounce, its highest since late June.

comments powered by Disqus
SSL