Tuesday, 3rd October 2006 (3905 views)

The announcement from North Korea that it intends to conduct a nuclear test in the future has not affected the gold price on world markets.

Prices in London fell by nearly one per cent on Tuesday (October 3rd) trading and did not seem to react to the statement from the North Korean foreign ministry.

Seen by some analysts and observers as one of the more confrontational and aggressive statements from the East Asian country throughout its war of words with the United States, the announcement noted that military security was a key factor behind the decision.

However, traders' muted reaction to the news, coupled with healthy fuel inventories from the U.S. energy department, meant that gold did not experience the expected spike in price that usually occurs when the stability of global politics is threatened.

In afternoon trading, the price of the precious metal was hovering around $593 an ounce.

 

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