Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Extending yesterday's 1.3% rally, gold jumped another 0.8% to close at a two-month high over $1,290 as escalating tensions with North Korea drove investors into safe-haven assets. Silver added another 1.3% to yesterday's 3% surge.

President Trump amplified his apocalyptic warning to North Korea today, refusing to count out a pre-emptive nuclear strike and saying the rogue nation should be "very, very nervous." These statements came after Pyongyang threatened Guam with a missile strike, provoking the President to threaten retaliation with "fire and fury like the world has never seen."

Markets reeled from the saber-rattling as investors eschewed risk, knocking the S&P 500 1.4% lower for its biggest one-day drop in nearly three months. The CBOE Volatility Index, the so-called fear gauge, jumped to a nearly a nine-month high.

US wholesale inflation fell in July for the first time in eleven months, adding to speculation that the Fed may be disinclined to raise rates again this year. Several Fed officials have recently citing weak inflation as a reason to keep rates steady in coming months.

The dollar slipped 0.1% against major rivals, supporting gold and other commodities denominated in it for international trade by them less expensive overseas. Treasury yields also fell as investors poured in the safety of government bonds.

The other precious metals also gained, with platinum and palladium picking up 1% and 0.6%, respectively.

At the Comex close: December gold gained $10.80 to $1,290.10; September silver rose 20 cents to $17.07; October platinum climbed $9.80 to $985.90; and September palladium added $5.20, to $897.05 an ounce.