Gold rose on Monday as tensions over North Korea fueled safe-haven demand, while doubts about U.S. President Donald Trump’s ability to enact pro-business policies pushed U.S. bond yields to near two-month lows and weakened the dollar. December gold futures closed at 1296.7 ,up $5.10 for the session while silver pushed slightly higher to close at 1709.5 up 1.5 cents for the session. The big event traders will be eyeing will be the annual central bankers meeting held in Jackson Hole, Wyoming, Thursday through Saturday. Highlights of central bank speakers giving speeches this week from around the world include Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi. The U.S.-North Korea stand-off regarding North Korea’s nuclear missile program is still near the front burner of the marketplace. In my view it is still a supportive element for safe-haven gold. The U.S. and South Korea will hold joint military exercises this week, which could prompt an angry reaction from North Korea. Also supporting gold is a Trump administration that remains in turmoil. The President will address the nation tonight on Afghanistan. Due to the market being overly headlined driven, metals traders will need to watch the indices and Dollar index as gold for now is trading inverse of both markets in my view. A close over 1308.1, and the market will test 1324 basis December futures. A close under weekly pivot at 1290.4 could lead to a pullback to weekly support at 1273.9 in my opinion.
