Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Gold gained 0.4% to close at an 11-week high near $1,297 as wargames in South Korea brought expectations of renewed tensions between the US and North Korea, boosting safe-haven demand.

South Korean and US launched joint military exercises today to ensure readiness for a possible attack from the North. After weeks of bellicose threats between President Trump and dictator Kim Jon Un, the long-planned action is expected to spark an escalation of saber-rattling, stoking worries about the use of nuclear weapons.

Also supporting gold, the dollar fell 0.5% against major rivals on the as the annual meeting of global central bankers commenced at Jackson Hole, Wyoming. Traders speculate that ECB chief Maria Draghi may use the platform to discuss cutbacks in quantitative easing, which would boost the euro at the dollar's expense. Treasury yields fell on flights to safety.

Net-long positions in gold on Comex surged 30% to a 10-month high last week as hedge funds and money managers became increasingly bullish in light of building political tension in Asia and at home.

The other precious metals were also higher, with silver adding 0.1% while platinum and palladium rose 0.3% and 1.3%, respectively.

At the Comex close: December gold gained $5.10 to $1,296.70; September silver added 2 cents, to $17.02; October platinum rose $3.10 to $985.50; and September palladium climbed $11.90 to $939 an ounce.