Gold prices broke out from key resistance levels at $1,300 per ounce on Monday after North Korea launched a ballistic missile over a Japanese island. The launch represents the fourth test in four days in defiance of warnings made by U.S. President Donald Trump. Tokyo and Washington have requested an urgent meeting of the UN Security Council in response to the latest battery of tests as options for deterring North Korea are quickly diminishing.
Since gold is a safe-haven asset, prices tend to increase as uncertainty in the global market rises and equities move lower. Gold prices have moved sideways over the past few years as equity markets have significantly outperformed, but those dynamics could change if the North Korean situation takes a turn for the worst. Many investors interested in gold turn to exchange-traded funds (ETFs) such as the SPDR Gold Shares ETF or the iShares Gold Trust ETF (See also: What Drives the Price of Gold?)
Gold prices broke out after North Korea’s latest missile tests, but traders will be watching these key resistance levels. …read more
Read more here: Missile Tests Send Gold Prices to Highest Levels This Year
Category: GLD, IAU