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Gold Above $1,300 After North Korea Missile Launch

A flight to safety pushed physical gold through $1,300 for the first time this year and several listed gold miners made significant daily gains

Morningstar News Team 29 August, 2017 | 4:44PM

Gold bars

Spot gold and mining shares were back in favour on Tuesday as North Korea's missile launch over Japan sent investors fleeing from equities and back to safe havens.

Physical gold prices hit levels last seen in autumn 2016, having so far this year failed to breach the $1,300 level - and having started the year $200 lower than current prices.

Even with many political shocks in 2016, the yellow metal has failed to post significant gains, but the latest events in Asia-Pacific seem to have been the trigger for a push higher.

Approaching the market close in London. listed gold miners, which have not always moved in tandem with the price of physical gold, were posting strong gains on Friday's close. 

Randgold Resources (RRS) was the biggest gainer on the FTSE 100, rising nearly 5% to £79.25. CF Odey Opus Fund holds Randgold as its second-biggest holding. Four-star rated Investec Global Gold also has the listed miner as a significant holding.

Africa-focused FTSE 250 stock Acacia Mining (ACA) was nearly 8% higher at 215p.

FTSE All-Share listed Centamin (CEY), which has mines in Egypt, was up over 1% at 155p. 

Global diversified miner BHP Billiton (BLT), which ramped up its gold production last year, saw its shares pushed nearly 0.5% higher at £14.44. 

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article
Security NamePriceChange (%)Morningstar
Rating
Acacia Mining PLC176.20 GBX-1.01-
BHP Billiton PLC1,363.50 GBX0.63
Centamin PLC138.20 GBX1.17-
Randgold Resources Ltd7,075.00 GBX0.71-
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