Investing.com – Gold edged higher in Asia on Wednesday as political risk rose after President Donald Trump in a speech to the South Korean parliament warned North Korea not to make a “miscalculation” in development of its missile and nuclear weapons programs.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange rose 0.17% to $1277.98 a troy ounce.
Overnight, gold prices came under pressure on Tuesday as safe-haven demand fell after concerns faded over political uncertainty in the Middle East while a sharp jump in the dollar added to downside momentum.
Gold prices gave up most their gains from Monday’s session as the dollar rose sharply on signs of progress on tax reform and bullish labor market data.
The U.S. Labor Department’s latest Job Openings and Labor Turnover Survey (JOLTs) report, a measure of labor demand, showed job openings in September improved to about 6.1 million, beating expectations of 6.091 million.
The bullish data on job openings came as investor optimism on tax reform edge higher after Republic lawmakers began on Monday revising their proposed overhaul of the U.S. tax system.
Gold prices are sensitive to moves higher in the U.S. dollar – A higher dollar makes gold more expensive for holders of foreign currency, thus, reduces demand.