Despite gold suffering consistent losses throughout 2017, now it is enjoying gains on the Asian market due to renewed fears over possible military actions from North Korea. This was caused once again by US President Trump’s provocative language, this time accusing Kim Jong-un of sponsoring terrorism.
Even last night gold marked losses as the dollar strengthened on news that in Germany Chancellor Angela Merkel has failed to form a government and the country might be headed for another round of elections.
Nevertheless, due to the tensions between the United States and North Korea, gold was able to come to the forefront amid traders in the Asian session. Traditionally investors turn to the gold when in doubt about the dollar’s future. That is why gold futures rose to $1,279.92 earlier today.
Still, these spikes are most probably temporary. We expect news from the US today and we get closer to the probable rate hike in December each day, so it is likely that at the first sign that the dollar is strengthening, gold will start declining once more.
