Gold logs biggest one-day jump in nearly 3 months!
· Gold futures on Wednesday scored their sharpest daily rise since mid-May amid a war of words between the U.S. and North Korea.
· Gold for December delivery GCZ7, +0.13% jumped $16.70, or 1.3%, to $1,279.30 an ounce, posting its biggest single-session jump since May 17 when the metal added $22.30 or 1.8%.
· September silver SIU7, +0.10% tacked on 47.4 cents, or 2.9%, to $16.863 an ounce, representing its sharpest daily rise since Sept. 21, 2016, and putting the white metal at a nearly two-month high, according to FactSet data.
· North Korea’s recent threat to launch a missile strike at U.S. territory Guam has helped to elevate haven buying in global financial markets. Pyongyang’s statements followed U.S. President Donald Trump’s late-Tuesday afternoon vow to respond to the Hermit country with “fire and fury like the world has never seen” if it doesn’t cease its threatening posture, which includes a series of ballistic missile tests.
· “It’s really gold behaving in its traditional manner as a safe-haven asset,” said Ross Norman, chief executive officer of London-based Sharps Pixley Ltd.
Norman said gold needs to take a run above $1,295 an ounce for him to be convinced that the commodity has entered a more significant bullish phase.
“I’m always suspicious of moves like this because the issues that cause them are rarely sustained,” he said, referring to the political tensions between North Korea and the U.S.
· Pyongyang said it was "carefully examining" a plan to strike Guam, home to a U.S. military base that includes a submarine squadron, an airbase and a Coast Guard group.
Reference: Market Watch
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