Gold Prices Explode as North Korea Calls Trump Comments Declaration of War
As North Korea's Foreign Minister Ri Yong Ho said recent actions from the U.S. are a declaration of war against North Korea and Pyongyang will consider all possible responses, investors looking to shore up safety in an uncertain market sent gold prices surging.
Following Ri's comments Monday, Sept. 25, gold futures for December delivery spiked up $14.30, or 1.1%, to $1,311.80 per ounce in late afternoon trading. Before Ri's comments, gold was trading down about 0.05%. Monday's gains put gold at about a 14% gain for the year so far.
Ri said North Korea would "shoot down U.S. strategic bombers, even if they are not yet inside air-space border of our country." Ri's comments come after U.S. warplanes flew near the reclusive country's coastline north of a demilitarized zone between North and South Korea on Saturday, Sept. 23.
As geopolitical concerns reached closer to a boiling point Monday, the yield on 10-year U.S. Treasuries fell 1.5% and all three benchmark stock market indexes declined in late afternoon trading. The CBOE Volatility Index I:VIX jumped as high as 14% Monday, suggesting investors have returned to betting on market volatility after shrugging off previous tension with North Korea last week.
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