Daily Gold Update

Source:Bill Musgrave, American Gold Exchange

Austin— Rising for a third session, gold gained 0.3% to close at an 11-month high near $1,319 as new tensions with North Korea stoked safe-haven buying.

Pyongyang fired a ballistic missile over Japan yesterday, escalating tensions with the US and causing Japanese PM Shinzo Abe to label the act "an unprecedented, grave and serious threat." The new provocation comes only two weeks after North Korea threatened to attack Guam, spurring fears of a nuclear confrontation as President Trump promised to rain "fire and fury" upon the rogue nation.

The dollar extended its weakness against major rivals, pushing the ICE Dollar Index to its lowest level in more than 30 months, as investors sought safety in the Swiss franc and Japanese yen. A falling dollar supports gold and other commodities priced in it for international trade by making them more expensive overseas.

Gold jumped above $1,331 earlier in the trading session before receding on profit-taking after the Conference Board reported that consumer confidence rose in August to a 17-year high. Record-high home and stock-market valuations, along with a strong job market, have boosted optimism.

The other precious metals were mixed, with silver dipping less than 0.1% while platinum and palladium climbed 1.4% and 1.2%, respectively.

At the Comex close: December gold gained $3.60 to $1,318.90; December silver dipped a penny to $17.52; October platinum rose $14.20 to $1,003.50; and December palladium climbed $11.35 to $943.70 an ounce.