Gold price backs away from one-year highs as tensions over North Korea ease
New York (Sept 11) Gold prices fell on Monday, taking a hit as investor interest in perceived riskier assets such as stocks increased on decreasing tensions surrounding North Korea.
Gold for December delivery GCZ7, -0.79% fell $8.20, or 0.6%, to $1,342.90 an ounce. The SPDR Gold Shares ETF GLD, -0.78% was down 0.6% premarket.
Gold settled at $1,351.20 an ounce on Friday, the highest since Sept. 6, 2016, for a most-active contract, according to FactSet data. The metal gained 1.6% last week, chiefly driven by concerns that North Korea may launch another missile over the weekend to mark the country’s Foundation Day.
Investors had also been worried about economic and safety risks in the run-up to Hurricane Irma, which made landfall in Florida over the weekend. The hurricane has been downgraded to Category 1, but remains a dangerous storm.
A weaker-than-expected storm and ebbing worries over North Korea boosted global equities, with U.S. stock futures also pointing to a strong start. The ICE U.S. Dollar Index DXY, +0.07% rose 0.1% to 91.45, notably gaining against the Japanese yen, which along with gold, is another haven asset.
Weakness in the greenback often lifts dollar-denominated gold prices, while the reverse can also be true.
North Korea did not test another missile over the weekend, though the war of words continued, this time from the country’s foreign ministry. The UN Security Council is expected to vote on Monday over a U.S. drafted resolution to impose tougher sanctions on North Korea.
“In case the U.S. eventually does rig up the illegal and unlawful ‘resolution’ on harsher sanctions, the DPRK shall make absolutely sure that the U.S. pays due price,” North Korea’s foreign spokesman said in a statement via the official KCNA news agency on Monday, according to AFP.
Among other metals, December silver SIZ7, -1.48% fell 19 cents, or 1%, to $17.84 an ounce. December copper HGZ7, +1.15% rose 3 cents, or 1.2%, to $3.0775 a pound after settling down 2.5% last week. Copper had been trading at a three-year high at one point last week.
October platinum PLV7, -0.99% shed $4.50, or 0.4%, to $1,007.80 an ounce, while December palladium PAZ7, +0.72% jumped $11.45, or 1.2%, to $948.40 an ounce.
MarketWatch
