Gold Sees Safe Haven Gains On Trump “Fire and Fury” Threat

– Gold climbs amid rising risk on US and North Korea
– Trump threatened North Korea with ‘fire and fury like the world has never seen’
– North Korea says prepared to strike the US territory of Guam
– North Korea said US exercise ‘proves that the U.S. imperialists are nuclear war maniacs’
– Heated rhetoric likely to support gold for rest of the week
– Russia and China poised to take advantage
– Situation adds to uncertainty in an already uncertain world

Gold provides certainty as US and North Korea go head-to-head

Just a few months ago President Trump offered an olive branch of sorts to North Korean dictator Kim Jong Un. In a series of interviews Trump referred to Kim as a ‘pretty smart cookie’ and one who he would be ‘honoured’ to meet.

Shortly after Kim Jong Un seemingly batted the olive branch away when he issued the following statement through state media, ‘… the most perfect weapon systems in the world will never become the eternal exclusive property of the U.S. … the U.S. should not … disregard or misjudge the reality that its mainland and Pacific operation region are in (North Korea’s) sighting range for strike.”

Now, less than two months later, we sit here with our morning coffees wondering if the world is on the brink of nuclear war.

Trump’s olive branch is now a massive red hot poker which continues to poke the proverbial bear.

“North Korea best not make any more threats to the United States. They will be met with fire and fury like the world has never seen.”

“He has been very threatening beyond a normal statement. And, as I said, they will be met with fire, fury, and frankly power, the likes of which this world has never seen before.”

Technologically advanced

The latest war of words comes on the back of a heated few days between the two countries.

On Saturday the UN announced fresh sanctions on North Korea. On Monday the US released pictures of a bilateral strategic exercise around Guam.

North Korea’s state media said North Korea would retaliate and make “the US pay a price” for drafting the new measures.

In the past the world has been reassured that North Korea’s bark is far worse than its bite due to the lack of technology which allowed the regime to build dangerous missiles.

This is unfortunately no longer the case.

A report by the Washington Post, which cited US intelligence officials, suggested North Korea is developing nuclear weapons capable of hitting the US at a much faster rate than expected.

North Korea seems keen to prove this as soon as possible: