Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as continued geopolitical tensions between the U.S. and North Korea gave support to the precious metal.
The most active gold contract for May delivery rose 3.9 U.S. dollars, or 0.31 percent, to settle at 1,278.10 dollars per ounce.
Investors are moving to the precious metal’s safe haven properties after U.S. President Donald Trump ordered a Navy carrier group into the waters off the Korean peninsula.
Analysts noted that although this news has been known for a while, the impacts have not yet fully been digested by the market, resulting in the support seen on Wednesday.
A report released on Wednesday by the U.S. Department of Labor showed export prices increasing by 0.2 percent during the month of March, and import prices decreasing by 0.2 percent during the month.
Analysts interpret this report as report signaling potential softness in upcoming consumer price and producer price reports.
Gold was given further support as the U.S. Dollar Index has pulled back from a sharp increase on Tuesday, rising by only 0.02 percent to 100.73 as of 1815 GMT. The index is a measure of the dollar against a basket of major currencies.
Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.
The precious metal was given additional support as the U.S. Dow Jones Industrial Average fell by 38.83 points, or 0.19 percent as of 1820 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.
Silver for May delivery added 4.6 cents, or 0.25 percent, to close at 18.3 dollars per ounce. Platinum for July delivery fell 1.6 dollar, or 0.17 percent, to close at 967.90 dollars per ounce. Enditem