The spot gold price is listed at 1307.80 - 1308.80 USD/ounce (buy - sell).
9999 gold price for December delivery on the New York Comex increased by 6.5 USD to 1303.80 USD/ounce.
The increasing tensions between North Korea and the US are the main reason for gold prices to increase in today's trading session and break the 14,300 USD/ounce mark. Investors rush to buy gold as a safe haven. US President Donal Trump in his speech to the United Nations made some rather harsh words when talking about North Korea's nuclear program and being ready to completely destroy North Korea to protect the United States and its allies.
Responding to President Trump's threat, North Korea announced a test of the strongest H bomb in history in the Pacific Ocean. This is considered a strong message to respond, while affirming Pyongyang's nuclear capabilities. North Korea will shoot down US fighter jets near North Korea.
In addition, the US Federal Reserve (Fed) also announced that the plan to cut the balance sheet worth 4.5 trillion USD will begin in October 2017. Both of these policy measures have the effect of tightening monetary policy and raising interest rates. Rising interest rates could reduce the appeal of gold, as the precious metal does not yield.
The results of the Wall Street survey show that the majority of investors and experts believe that gold prices will continue to increase next week. Of the 16 experts surveyed, 50% said gold would increase next week, 31% said gold would decrease and 19,9% did not comment.
In the Main Street survey, a total of 525 experts and investors, 45% predicted gold would increase next week, 39% thought gold would decrease and the neutral vote was 16%.
