Gold prices gained the most in more than three months in early European trading Tuesday, taking the price of the bullion past $1,300 per ounce and near to highest level since the November Presidential elections.
Gold prices for immediately delivery were marked 1.17% higher, or $15.24 per ounce, higher in the opening hours of London trading and changing hands at $1.325, the highest since Nov. 9. Gold has gained more than 10% since early July as investors move cash into traditional safe-haven assets amid the rising military and political tensions in Asia following a series of missile tests by North Korea.
North Korea's latest missile test -- the first to fly directly over Japan since 2009 -- was launched late last night and landed just 1,200 kilometres (750 miles) off the Japanese island of Hokkaido.
Bullion prices have also benefited from a falling U.S. dollar, which continued to lag its global peers in overnight trading as investors took refuge in both the Japanese yen and the European single currency. The dollar index, which measures the greenback strength against a basket of six global currencies, was seen 0.54% lower at 91.70, the lowest since January 2015.
Gold mining shares were some of the few gainers in the European trading session, with Randgold Resources (GOLD - Get Report) rising 4% and Fresnillo Plc (FNLPF gaining 3.7% in the first two hours of trading in London. Harmony Gold Mining Co.'s HMY ADRs were marked 4.4% higher in pre-market trading in New York at $1.97 each.
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