Gold is beating U.S. stocks this year as a war of words between President Donald Trump and North Korea, along with a weaker dollar, boosts demand for haven assets.
Bullion has climbed 12% in 2017, overtaking the S&P 500 index of leading U.S. stocks as Japan and South Korea warned the North Korean dictatorship it faces a strong response if it follows through on threats to launch a missile toward the U.S. territory of Guam.
Gold for immediate delivery rose 0.6% to $1,285.29 an ounce by 2:56 p.m. in New York after touching $1,287.92, the highest since June 8.
There’s “still a risk that it may fail at $1,295 once again,” Ole Hansen, head of commodity strategy at Saxo Bank, said by email. “However, a break would force funds to step in considering the relative low exposure they currently hold.”
Gold hovered around $1,296 in April and June before falling back.