Gold jumps back above $1300 after North Korea accuses US of declaring war

Gold jumped following comments made by the North Korean foreign minister that increased the demand for safe-havens. The yellow metal rose more than $10 in a few minutes rising back above $1300.

North Korea's foreign minister Ri Yong Ho said that US President Trump comments over the weekend were a declaration of war. Equity prices in Wall Street dropped after the comments while US bond rose further. In the currency market, the yen and the Swiss franc printed fresh highs.

N. Korean ForMin: Trump's comments over weekend were clearly a declaration of war

The value of the ounce climbed from $1293 and rose to $1306, reaching the highest level since Wednesday. At the moment, it is trading at $1304 up $8 from Friday’s close. It remains with a bullish tone.

Gold is gaining for the second day in a row and continues to recover after falling last week to $1288, the lowest in four weeks.

XAU/USD Technical levels

To the upside, resistance levels could be located at $1310, $1315 (Sep 20 high) and $1320 (20-day moving average). On the downside, support might lie at $1299 (Sep 22 high), $1288 (last week low) and $1280 (Aug 22 low).