Gold Climbs as North Korea Concerns Increase

By Benjamin Rains , Zacks Investment Research

Gold stock prices and shares of mining companies jumped on Wednesday amid heightened turmoil surrounding the U.S. and North Korea.

In Washington D.C., President Donald Trump doubled down on his rebuff of the Pyongyang regime and its nuclear program on Wednesday, which helped send many world markets down over the past two days.

Pyongyang responded to provocations from President Trump and said it would consider using missiles against U.S. military bases in Guam. Wasting no time, President Trump took to Twitter Inc (NYSE:TWTR) on Wednesday morning to boast about the renewed strength of America’s nuclear arsenal.

The escalating sentiments out of North Korea and Washington after the weekend UN Security Council sanctions helped send the price of the fail-safe currency up on Wednesday.

Gold stocks prices closed up around 1.48% at $1,281.30 per ounce on Wednesday. The commodity touched over $1,284.40 an ounce on Wednesday, which marked the highest intraday price in almost two months.

Some of the top performing gold stocks also rose on the back of the heightened U.S. and North Korean tensions.

Barrick Gold Corp (USA) (NYSE:ABX) stock popped 1.42%, while Newmont Mining Corp (NYSE:NEM) gained 1.01%. Canadian gold mining company McEwen Mining Inc (NYSE:MUX) and DRDGOLD Ltd. (ADR) (NYSE:DRD) both jumped over 2%.

Shares of three of the top gold ETFs were also up on Wednesday. SPDR Gold Shares (ETF) (NYSEARCA:GLD), the iShares Gold Trust (ETF) (NYSEARCA:IAU), and the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) all rose over 1%.

Despite today’s jump, gold still sits well below its 52-week high of over $1,350 per ounce, which it reached last summer.

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