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Gold up as North Korea tests another missile and dollar continues to lose

The gold price has risen nearly $10 over the weekend, as political tensions over North Korea escalate and the dollar continues to fall.

The lowest point for the gold price on Friday was $1,258.28; at the time of writing it stands up at $1,266.69.

Since North Korea tested an Intercontinental Ballistic Missile (ICBM) in early July, worries over the state’s ability to target US cities have risen; the fear stems from the capability of the US to help its allies without fear of North Korea being able to retaliate.

General Terrence J O’Shaughnessy, Pacific Air Forces commander, was quoted in the Independent as saying “we have a responsibility to our allies and our nation to showcase our unwavering commitment while planning for the worst-case scenario”.

Now, over the weekend, Pyongyang tested another missile which they claim could reach the US. Just hours later, two B-1 US bombers flew near South Korea’s capital Seoul, and successfully tested a missile interception system: the Terminal High Altitude Area Defense, or THAAD, located in Kodiak, Alaska. President Donald Trump also lambasted China for not doing enough to halt the ambitions of the rogue state.

Aside from political forces, gold is being kept buoyant by the dollar extending its losing streak, reaching two and a half year lows against the euro. Aside from the continuing difficulties the Trump administration is facing, disappointing US economic data has cast further doubts onto whether another rate hike by the Federal Reserve will happen this year; rate hikes are seen as dollar supportive and therefore bad for the gold price.

Photo: Tuangtong

Link to this article: : http://www.goldmadesimplenews.com/gold/gold-up-as-north-korea-tests-another-missile-and-dollar-continues-to-lose-13302/

Posted by on Jul 31 2017. Filed under Gold News, Markets. 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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