Gold Hits 5-Month High As N Korea Threatens Nuclear Attack

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Gold prices hit a 5-month high in the international markets, also pushing gold prices in India higher, as North Korea threatened a nuclear attack on the US. Reuters reported that Navy strike group steamed toward the western Pacific - a force U.S. President Donald Trump described as an "armada".

North Korea looking for trouble

The US President also tweeted that North Korea was "looking for trouble". "We are sending an armada. Very powerful," Trump told Fox Business Network. "We have submarines. Very powerful. Far more powerful than the aircraft carrier. That I can tell you," Reuters reported.

On the other hand the report said that North Korea responded to the verbal duel.  "Our revolutionary strong army is keenly watching every move by enemy elements with our nuclear sight focused on the U.S. invasionary bases not only in South Korea and the Pacific operation theater but also in the U.S. mainland," its official Rodong Sinmun newspaper said.

Gold prices to remain elevated

Investors thus rushed to take shelter in gold, which rose to $1257 an ounce. In the Indian markets, gold may inch even higher, after the rupee dipped against the US dollar. Gold for 22 karats and 24 karats were both likely to open at Rs 28,700 in Mumbai, marginally higher than the previous days levels. Check gold prices in all major Indian cities here

Syrian air strikes and French Presidential election add to worries

The recent air strikes by the US on Syria have kept gold at higher levels. Investors are now getting increasingly worried over the developments and geo political tensions around the world.

Complicated elections in France, where there is a chance of French far-right leader Marine Le Pen winning the Presidential elections on Tuesday. She is perceived as anti-EU and the French Presidential race has also led investors to buy into gold.

Gold gets support from strong Indian rupee

Gold prices in India have not risen as sharply, when compared to international prices as the rupee has supported prices. For example, the Indian rupee has gained from levels of Rs 68 to levels of Rs 64.62, which has helped push gold prices lower, even despite of a sharp increase in gold prices. However, if the rupee falls and gold prices in the international markets also climb there is no telling where gold could be headed.

 

Read more about: gold
Story first published: Wednesday, April 12, 2017, 10:40 [IST]
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