Gold price reaches 11-month high after North Korea test “hydrogen bomb”

Experts have expressed “alarm” at the level and pace of development of the nuclear technology North Korea tested over the weekend, which saw the gold price reach an 11-month high.

Pyongyang claimed to have tested a hydrogen, or thermonuclear, bomb on Saturday, which caused tremors ten times as powerful as the last time Pyongyang exploded an atomic bomb a year ago, according to the Japan Meteorological Agency.

The gold price had a strong reaction to the development, rising over 1% to $1,338.36 by 07:08 BST, having earlier touched its strongest level since last September at $1,339.47.

Despite Japan’s proximity to the rogue state and firing of a North Korean missile over the island nation last Tuesday, the yen rose against the dollar. The yen is often seen as the Forex “safe haven”, and has climbed in times of geopolitical tension.

However not all are convinced. Kit Juckes, macro strategist at Société Générale , commented “the yen as a safe haven? I’d rather own gold, or the Canadian dollar. The yen is a traditional safe haven currency but it’s really hard to make the case that it’s a long-term winner from this particular event.”

In banking news, Thursday will see the Governing Council of the European Central Bank meet for a monetary policy decision. The euro was up 0.3% at $1.1894, the highest level against the dollar since last Thursday, despite expectations of an unchanged deposit rate and main refinancing rate. The current levels sit at -0.4% and 0% respectively.

Photo: Two thermonuclear bombs in the National Museum of the US Air Force. North Korea claims to have developed weaponry on this level. Credit: OZinOH. Licensed under CC BY-NC 2.0.

Link to this article: : http://www.goldmadesimplenews.com/gold/gold-price-reaches-11-month-high-after-north-korea-test-hydrogen-bomb-13379/

Posted by on Sep 4 2017. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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