Gold Up on Geopolitical Risks

Gold is trading to the upside with a gap in the opening Asian session. The precious metal went from $1,291 do a high of $1,325 on geopolitical risks amidst tension between North Korea and Japan. Investors fled to to safety as North Korea launched a missile into the Japanese region Tohoku.

Japanese Prime Minister Shinzo Abe said that the ballistic missile passed over the northern end of Japan. Local government urged people in the area to take refuge in solid buildings or shelters.

The tension between the two countries left investors seeking safety that only Gold can offer. The precious metal is now trading at $1,321, close to its daily high. The last time Gold reached that level was during the Presidential elections on Nov 9 last year.

Upside potential now appears heavily influenced by fundamentals.

Chart: XAU/USD D1