London: Gold jumped to its highest since November yesterday as investors bought bullion as insurance against falling prices of other assets after North Korea tested a missile over Japan.
“Funds and traders are filling their boots with gold at the moment and so far that’s justified,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
“No matter where you look you can’t point your finger at anything that’s gold negative. Stocks are coming off hard, the dollar has weakened and now also against the yen, which has been the missing link, while bond yields are also taking a beating.”
Spot gold, which rose for a third straight session, was up 0.9 percent at $1,320.64 an ounce by 1355 GMT after touching $1,325.94, its highest since November 9.
US gold futures for December delivery rose 0.9 percent to $1,326.50.
