Gold prices are boosted by geopolitical risks

Gold prices rose on Monday, reversing the earlier decline, due to geopolitical risk to promote safe-haven buying.

Gold climbed 1%, due to the tensions between North Korea and the United States escalating, German Chancellor Angela Merkel failed to be overwhelming victory in the Sunday election.

DPRK Foreign Minister Li Yonghao said that US President Trump has declared war on North Korea, the country retains its ability to shoot down US strategic bombers in its airspace.

German Chancellor Angela Merkel won his fourth term in the Sunday presidential election, but had to form a coalition government.

US and North Korea tensions will "convert investors," they will convert high-risk assets from US equities to hedge assets such as gold, silver and US bonds, "said Phillip Streible, a senior commodity broker at RJO Futures.

1848 GMT, spot gold rose 0.85% to $ 1,308.06 an ounce, down earlier, due to the results of the German election to suppress the euro.

US December gold futures closed up $ 14, or 1.08 percent, at $ 1,311.50 an ounce.

The euro fell against the dollar, South European debt was sold, after the German election results led to outside concerns Germany will appear on the euro zone is more tough position.

Gold recently fell pressure, because the Fed is expected to raise interest rates again this year, and began to reduce the holdings of $ 4.5 trillion balance sheet.

Despite the low level of gold, the demand for gold in the major Asian markets is still weak, as consumers wait for prices to fall further.