The "rocket man" sends gold above $1,300 per ounce again

This is a declaration of war—that is how North Korea's foreign minister described Donald Trump's recent statements about Kim Jong-un's regime yesterday. It did not take long for the price of gold, traditionally considered the best hedge against capital loss in times of turmoil, to skyrocket.

During his speech in New York, Ri Yong Ho stated that the world must remember that it was the United States that first declared war on Korea. Korea now has the right to take defensive action against the US, including shooting down American aircraft, even if they are not in Korean airspace.

After these words, the price gold rose sharply and exceeded USD 1,310 per ounce. At the same time, we observed an outflow of capital from the stock markets and increased investor interest in gold, which shines brightest in the face of war.

Verbal sparring between the nuclear powers has been going on for many days. While Donald Trump announces that the Korean regime may not "survive long," Korea threatens the US with an "inevitable visit" from its missiles. Last week, Donald Trump mockingly called the Korean leader "Rocket Man," to which he replied that "a scared dog barks the loudest."

The American president has stated emphatically that the United States has shown "great strength and patience," but if forced to defend its own country or its allies, it will have no choice but to "totally destroy" North Korea. It is these words that Koreans interpret as a declaration of war.

MW