Gold prices extended their climb into a third session in a row Tuesday, settling at the highest level in almost a year, as a North Korean missile launch over Japan’s airspace rekindled geopolitical tensions in the region and sparked a flight to haven assets.
…The advance came after North Korea fired a ballistic missile across northern Japan, in what Japanese Prime Minister Shinzo Abe called an “unprecedented, grave and serious threat that seriously damages peace and security in the region.”
Tensions between Pyongyang and the U.S. and its allies—including Japan—have been running high most of the summer, stoking fears of a potential nuclear clash. President Donald Trump has previously said the U.S. would react with “fire and fury” if Pyongyang stepped up threats against the U.S. and its allies.
“There is increasing expectations for President Trump to counter react to the North Korean aggression, which may further propel the prices upwards,” said Mihir Kapadia, CEO at Sun Global Investments, in a note.