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Gold Climbs as North Korea Missile Test Sees Price at 2017 High

  • Bullion surges to the highest since November as miners advance
  • Precious metal stocks to benefit, according to Goldman Sachs

Gold rallied to the highest level this year after North Korea fired a ballistic missile over Japan, boosting haven demand. Palladium extended a rally and platinum rose above $1,000 an ounce.

Bullion for immediate delivery gained as much as 1.2 percent to $1,326.08 an ounce, the highest intraday price since Nov. 9, the day after Donald Trump was elected. It traded at $1,320.01 at 10:49 a.m in London, according to Bloomberg generic pricing.

“Gold prices have rallied to their highest level since U.S. elections,” analysts at Goldman Sachs Group Inc. including Abhinandan Agarwal said in a note to clients. “Expect precious metal stocks to outperform today.”

Gold has surged 15 percent this year, rising every month apart from June, as investors weigh the possibility of conflict in Asia, with Kim Jong Un’s regime pushing on with missile tests and U.S. President Donald Trump vowing a stern response. The precious metal has also climbed as the Federal Reserve is expected to go slow on further interest rate increases, which has weakened the dollar.

Miners Rally

Miners’ shares advanced. The FTSE/JSE Africa Gold Mining Index climbed 5.5 percent after touching the highest since May, with Harmony Gold Mining Co. Ltd. and AngloGold Ashanti Ltd. leading the pack.

Pyongyang had threatened earlier to fire a missile over Japan toward the U.S. territory of Guam, prompting Trump to warn he’d retaliate with “fire and fury.” Trump has also said force is an option to prevent Kim from gaining an intercontinental missile that could deliver a nuclear weapon to the U.S.

“A missile passing over Japan is an unprecedented, grave and serious threat to Japan’s safety,” Japan’s Chief Cabinet Secretary Yoshihide Suga told a news conference, adding there were no reports of damage. The Pentagon confirmed the missile flew over Japan, and said it didn’t pose a threat to North America.

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MARKET SUMMARY

INDICES

Name Last Change
DOW 22359.20 0.24%
S&P 500 2500.60 0.31%
NASDAQ 6422.69 0.52%
TSX 15454.92 0.42%
TSX-V 775.87 0.00%

Resource Commodities

Name Last Change
Gold 1295.99 0.35%
Silver 17.00 0.18%
Copper 2.91 1.22%
Platinum 946.00 0.32%
Oil 50.55 0.28%
Natural Gas 2.95 5.02%
Uranium 20.18 N/A
Zinc 1.41 0.00%

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