Gold surges to 10-month high after N. Korea’s aggressive missile test

DAILY SABAH
ISTANBUL
Published 29.08.2017 10:18
emFile Photo/em
File Photo

Gold prices soared to a 10-month high Tuesday after North Korea fired a missile over northern Japan, fueling worries of fresh tension between Washington and Pyongyang.

The precious metal jumped 0.9 percent to $1,324 per ounce, hitting its highest level since November 9.

Gold is considered to be the most traditional safe haven at times of mounting geopolitical unrest.

In an unprecedented aggressive test, North Korean missile flew over the northern Japanese island of Hokkaido and landed in the Pacific Ocean late Monday.

The Japanese government described the missile as a "serious, grave security threat" to the country.

Meanwhile, another safe haven, the Swiss franc, was also boosted by the North Korea's missile test. It hit a one-month high of 0.9498 franc to the dollar and traded at 0.9523 franc on the dollar, up 0.3 percent. The Swiss currency gained 0.4 percent against the euro, now standing at 1.1396 per euro.

In the beginning of August, U.S. and North Korea engaged in a fierce war of words following reports that Pyongyang successfully produced a nuclear warhead that can fit inside its missiles.

The exchange of threats included U.S. President Donald Trump's infamous "fire and fury" comment, while North Korean leader Kim Jong Un threatened to strike the U.S. Pacific territory of Guam.

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