Gold Prices Edged up due to North Korea Tensions, FOMC Release of Minutes

Today, with the awaited release of US Federal Reserve’s last meeting minutes and the rising up of North Korea tensions, the price of the yellow metal inched up.

Traders are cautious ahead of FOMC minutes of meeting release today

Traders are cautious ahead of the due release of the Federal Open Market Committee (FOMC) minutes which will give some clarification on the Federal’s next hike in interest rates.

Gold is a precious metal and is seen as a safe haven investment especially in the times of economic and political turbulence when investors resort to sell riskier assets such as stocks.

Spot Gold price rose by 0.3% and climbed up to $1227.71 per ounce by 04:14 Greenwich mean time. The price of US Gold futures for delivery in August climbed 0.7% to $1227.10 per ounce.

North Korea tensions made the Asian investors happy for making some bids

Analysts believe that the Asian investors were happy making some bids due to increasing North Korea tensions. North Korea announced on Wednesday that its ICBM missile is able to carry a large nuclear warhead. This was triggered after the call by Washington for a global action to hold N Korea accountable for pursuing nuclear warheads.

Analysts’ expectations on future prices

Technical analysts expect the price of the spot gold to test the resistance level at $1231 per ounce. The break above this level will lead the gold prices to gain to the next resistance level at $1238.

Gold traders are waiting for the FOMC minutes of meeting and this will gauge how committed is the central bank in hiking the interest rates this year.

Yaron Mazor is a senior analyst at SuperTraderTV.

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