Gold gains in Asia as NKorea tensions spur safe-have demand

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Gold prices gained in Asia on Monday after North Korea within the weekend claimed to obtain tested a hydrogen bomb, raising regionald global tension on concerns of the military conflict which could involve Japan, South Kore, the country and China.

Gold futures for December delivery about the Comex division on the Ny Mercantile Exchange rose 0.74% to a single,340.26 a troy ounce. Investors are keeping track of a U.N. Security Council meeting at a later time Monday for the new group of sanctions on Pyongyang in addition to a possible sterner stance by erstwhile ally China.

Last week, gold prices remained near to nine-and-a-half-month highs on Friday, shrugging off a rebound inside the dollar, as the weak nonfarm payrolls report fuelled consideration in the precious metal.

Gold pared some its gains, following its shift to a nine-and-half-month high, as market participants downplayed the impact weak job and wage growth in August might have within the Federal Reserve’s plans to hike rates later this year.

The U.S. economy created 156,000 jobs in August, missing consensus estimates in order to obtain 180,000 jobs.

The jobless rate unexpectedly rose in August to 4.4% while average hourly earnings fell lacking expectations, slowing to 0.1% from 0.3% from the prior month.

“The headline number was weaker in comparison to the consensus, yet not weak enough to vary the Fed’s stance on rates. Also, August is notorious for statisticians to obtain it right and numbers are often revised higher afterward. Investors go which includes a grain of salt,” said Omer Esiner, chief market analyst at Commonwealth Forex trading.

Gold is responsive to moves decreased both bond yields as well as U.S. dollar – A smaller dollar makes gold cheaper for holders of currency exchange while a fall in U.S. rates, decrease the opportunity cost of holding non-yielding assets including bullion.

Gold prices have spiked higher in recent weeks as ongoing geopolitical tensions inside the Korean peninsula continued to fuel safe-haven demand.

Net bullish bets on gold rose to 208,004, the very best in nine-months, in line with an investigation on the Commodity Futures Trading Commission (CFTC) released a week ago.

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