Gold looks to regain $ 1230 amid N. Korea-led risk-off

The ultimate safe-haven extends its recovery from seven-week lows into a second day today, as escalating tensions surrounding the Korean peninsula continue to spook markets.

Markets seek to safety nets such as gold in times of geo-political turmoil, in order to protect their capital. North Korea tensions flare up after the North Korean leader said that he is “firmly determined and committed” to test an ICBM that can hit the US mainland within this year.

In the wake of the North Korean missile launch, the US requested the UN Security Council to hold a meeting today, which is scheduled at 1900 GMT today.

However, the upside appears to lack follow-through as investors remain wary ahead of the release of the FOMC minutes, which could reveal a hawkish bias on the US interest rates outlook this year.

Comex Gold: Technical levels

Higher Side: 1230 (round figure), 1240.64 (10-DMA), 1248 (20-DMA)

Lower Side: 1225.41 (200-DMA), 1218 (multi-week troughs), 1210 (key support)