Gold spikes as North Korean foreign minister says Donald Trump has made a declaration of war

Emma Haslett
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Source: Getty

Gold spiked this afternoon after the North Korean foreign minister said comments by Donald Trump last week in which he threatened to "totally destroy" North Korea were tantamount to a "declaration of war" against his country.

Ri Yong Ho said North Korea has the right to take countermeasures against the US, including shooting down US planes, even if they are not in its airspace.

Gold futures jumped 0.5 per cent to $1,303.94 while the dollar fell 0.2 per cent against the yen to ¥111.76 after Ri's speech, at the UN in New York today.

Meanwhile, the S&P 500 fell 0.5 per cent to 2,491 oints, while the Dow Jones fell by the same amount, to 22,250 points.

Last week Trump said the US had "great strength and patience", but added:

If it is forced to defend itself or its allies we will have no choice but to totally destroy North Korea.

That was followed by equally strong comments from Kim Jong Un, who said "a frightened dog barks louder".

The mentally deranged behavior of the US President openly expressing on the UN arena the unethical will to "totally destroy" a sovereign state, beyond the boundary of threats of regime change or overturn of social system, makes even those with normal thinking faculty think about discretion and composure.