Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold surged 1.3% to close above $1,279, notching its best one-day rise in three months, as escalating tensions between the US and North Korea drove investors into safe havens. Silver jumped 2.9% for its biggest daily gain since last September.

North Korea threatened to launch a missile strike against US bases is Guam today, ratcheting up the saber-rattling after President Trump warned Kim Jon Un yesterday that further threats against the US would result "fire and fury like the world has never seen."

The dollar slid against the Swiss franc and Japanese yen, which are traditional seen as safe-haven currencies. Stocks and Treasury yields also fell as investors shifted to into safety.

Gold was further supported by dovish statements about interest rates from two prominent Fed members. Charles Evans of the Chicago Fed and James Bullard of the St. Louis Fed separately said rates are fine where they are. Bullard warned the Fed could be too aggressive by hiking again this year. Evans said the central bank should be "very careful" about future increases, and low inflation has him leaning away from another one this year.

The other precious metals were mostly higher, with silver jumping 2.9% and platinum adding 0.2% while palladium slid 0.7%.

At the Comex close: December gold surged $16.70 to $1,279.30; September silver jumped on 47 cents to $16.86; October platinum added $1.60, to $$976.10; and September palladium slid $6.55 to close at $891.85 an ounce.