Gold prices edged up and moved closer to the $1,300 level on Monday, boosted by a flight to perceived safer assets as the war of words between the U.S. and North Korea returned to the fore.
Gold for December delivery added $1, or 0.1%, to $1,292.60 an ounce, erasing an 80-cent drop from Friday. The contract briefly jumped above $1,300 in Friday’s session after a terrorist attack in Barcelona, Spain, and concerns about President Donald Trump’s pro-business agenda helped spark a rush to haven assets.
“Demand for gold is likely to remain high nonetheless, as the U.S. and South Korea began a joint military exercise earlier today. This could rekindle the conflict between the U.S. and North Korea, which had taken something of a back seat again recently,” analysts at Commerzbank said in a note.