Gold prices hit their highest in nearly 10 months early on Monday after North Korea’s latest and most powerful nuclear test drove investors towards safe-haven assets.
Spot gold was up 0.8 percent at $1,335.31 per ounce by 0041 GMT, after earlier touching its strongest since Nov. 9 at $1,336.79.
U.S. gold futures for December delivery were up 0.8 percent at $1,340.90.
The Japanese yen and sovereign bonds also climbed on Monday as North Korea’s nuclear test provoked the usual knee-jerk shift to safe havens, while futures pointed to a difficult day for global equities.
North Korea on Sunday conducted its sixth nuclear test, which it said was of an advanced hydrogen bomb for a long-range missile, prompting the threat of a “massive” military response from the United States if it or its allies were threatened.
South Korea’s military said on Monday its air forces and the army carried out a missile drill early in the day in response to North Korea’s nuclear test, adding the drills targeted the area where the test had been carried out.
Trade negotiators from Canada, the United States and Mexico presented more proposals for a renewed North American Free Trade Agreement on Friday and tried to put behind them threats from U.S. President Donald Trump to pull out of the treaty.
The European Central Bank is likely to announce a reduction of its monthly asset purchases in October, according to a majority of economists in a Reuters poll, who also said they expect the central bank to shut down the program by the end of next year.
The European Central Bank will discuss how to initiate a careful withdrawal from its asset purchase program, rate-setter Ewald Nowotny said on Friday.
Traders held to expectations Friday that the Federal Reserve would probably wait until the middle of 2018 before raising rates, after a government report showed employers added fewer jobs last month than expected.