Gold remains well bid, near the 11-month high established yesterday at 1344.33. Geopolitical and political tensions continue to dominant the headlines, driving haven flows.
U.S. yields have reached levels not seen since the U.S. election back in November. This is obviously weighing on the dollar and providing an additional tailwind for gold.
The North Korean nuclear test over the weekend reportedly has enraged Chinese leaders. Hawkish rhetoric is on the rise in Beijing, calling for heightened sanctions and potentially cutting off oil supplies.
Additionally, the Chinese military staged a demonstration of its ability to shoot down missiles near the North Korean border. According to the South China Morning Post, the test was intended as a warning to Pyongyang.