• Gold prices rose for a third day on Tuesday to its highest since November as mounting geopolitical tensions over a new North Korean missile launch stoked demand for safe-haven assets and weighed heavily on the dollar and equities.
Spot gold rose 0.6 percent to $1,316.90 per ounce by 0314 GMT, after earlier touching its highest since Nov. 9 at $1,322.33.
• “North Korea’s missiles over the Japanese Hokkaido islands obviously fueled buying for the flight for safety kind of money including the Japanese yen and gold,” said Yuichi Ikemizu, Tokyo branch manager at ICBC Standard Bank.
“Since it broke the $1,300 resistance, I think the market really changed,” Ikemizu said.
“I don’t think gold will be going back to $1,200 anymore...there’s more bullish factors in this market.”
• The metal was also drawing support from uncertainty surrounding President Donald Trump’s administration in the U.S. after his remarks raised fears of a government shutdown last week.
Trump on Monday said he hoped a government shutdown would not be necessary over his demand that the U.S. Congress fund his proposed wall along the southern border with Mexico.
• Spot gold is expected to rise to $1,337 per ounce, as it has cleared a resistance at $1,312, said Reuters technical analyst Wang Tao.
• Among other precious metals, silver was unchanged at $17.42 an ounce, after touching its highest since early June at $17.56 earlier.
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