Gold hits 5-month peak on rising geopolitical worries

Gold prices hit a five-month high on Monday (April 17) as the US dollar weakened.
Gold prices hit a five-month high on Monday (April 17) as the US dollar weakened. PHOTO: AFP

NEW YORK (REUTERS) - Gold prices hit a five-month high on Monday (April 17) as the US dollar weakened with investors taking refuge in safe-haven assets in the wake of rising geopolitical tensions over North Korea.

Spot gold had risen 0.7 per cent to US$1,293.90 per ounce by 0030 GMT, after hitting their highest since early November at US$1,295.42. The metal last week rose 2.5 per cent, posting its biggest weekly gain since June last year. US gold futures were up 0.6 per cent at US$1,296.

The United States, its allies and China are working together on a range of responses to North Korea's latest failed ballistic missile test, US President Donald Trump's national security adviser said on Sunday, citing what he called an international consensus to act.

President Tayyip Erdogan declared victory in a referendum on Sunday to grant him sweeping powers in the biggest overhaul of modern Turkish politics, but opponents said the vote was marred by irregularities and they would challenge its result.

The dollar dipped to a five-month low against the yen early on Monday.

Hedge funds and other money managers increased their net long positions in COMEX gold for the fourth straight week to April 11, and also raised silver and copper bets, US Commodity Futures Trading Commission data showed on Friday.

SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.77 per cent to 848.92 tonnes on Thursday from 842.41 tonnes on Wednesday.