Investing.com - Gold rose in Asia on Tuesday after sharp calls from the U.S. for the United Nations to impose even tougher sanctions on North Korea for its weekend test of what it claimed was a hydrogen bomb.
Comex gold futures rose 0.80% to $1,341.04 a troy ounce on the Comex. Speculation has grown that North Korea may test an ICBM on Sept. 9, the annibversary of the founding on the nation.
elsewhere, the China Caixin services PMI jumped to 52.7, well above the 51.8 level expected, the private survey released on Tuesday showed, aiding sentiment of a consumer-led rebound.
Earlier this month, the Caixin manufacturing PMI jumped in August to 51.6, beating a 50.9 level expected, data showed on Friday, showing the fastest pace of new orders in three years.
The figure follows the official manufacturing Purchasing Managers' Index from China on Thursday came in at 51.7 in August, beating expectations. Analysts polled by Reuters expected China to post official PMI of 51.3 for August, a tick down from 51.4 in July. A reading above 50 indicates expansion, while a reading below that signals contraction.
Overnight, gold prices hovered at one-year highs on Monday, as fresh threats by North Korea sparked concerns over a potential conflict in the region and boosted demand for safer assets.
Demand for the safe-haven metal was boosted after North Korea said on Sunday that it had conducted a test of a hydrogen bomb intended to be mounted on an intercontinental ballistic missile.
Pyongyang called the test a complete success, with a greater yield than previous tests and no adverse impact on the environment.
The news prompted U.S. to warn of a "massive" military response if it or its allies were threatened.
U.S. President Donald Trump also threatened to cut off trade with any country doing business with North Korea.
Gold prices also benefited from a weaker U.S. dollar after the U.S. Labor Department reported on Friday that the economy added 156,000 jobs in August from the prior month, while the unemployment rate ticked up to 4.4%.
Economists had expected 180,000 new jobs and an unemployment rate of 4.3%.
The report indicated that the Fed may be more reluctant to raise interest rates again before the end of the year.
Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.