Gold testing YTD highs with eyes on $1,375.14 June 2016 high

Gold is just shy of the recent year's high that was made yesterday as the CBOE Volatility Index surges 34% Tuesday afternoon to 13.61.

Stock-index benchmarks saw one of their worst daily declines since mid-August, as investors look for safe havens given the heightened concerns over the N.Korea and U.S. stand off.

U.S. to continue deployment of defense assets to Korea - Yonhap

N.Korea are not playing ball and the recent attempt by the US to impose sanctions on the Hermit Kingdom after it tested a hydrogen bomb over the weekend has sparked up the fear gauge after investors returned from the Labor Day holidays in the USA. U.S. Defense Secretary James Mattis was outspoken since the weekend's events and was warning Pyongyang on Sunday that any attacks on the U.S., Japan or South Korea “will be met with a massive military response, a response both effective and overwhelming.”

Also, there are concerns that President Donald Trump' will not be able to enact pro-growth legislation as soon as markets had started to price in towards the end of August gone the recent advances in tax reform that was said to be going on behind the scenes in the White House. 

Gold levels

A break above $1,339.60 (YTD high) opens $1,375.14 June 2016 high as next target with $1,352 and $1,367 as next key resistances. To the downside, $1,326, $1,316 and $1,298.80 are the next key support levels on the daily sticks.