Gold exchange traded products, including the SPDR Gold Shares (NYSEArca:GLD), iShares Gold Trust (NYSEArca:IAU) and ETFS Physical Swiss Gold Shares (NYSEArca:SGOL), have traded modestly higher over the past week amid escalating geopolitical tensions between the U.S. and North Korea.

While news of potential miniaturization of a nuclear device by North Korea was cited in a Japanese Defense Ministry annual report earlier on Tuesday, the decline in global markets during U.S. trading hours coincided with a report from the Washington Post, reports Reuters.

Gold has enjoyed greater demand in a low interest-rate environment as the hard asset becomes more attractive to investors compared to yield-bearing assets.

However, traders lose interest in gold when rates rise since the bullion does not produce a yield. Gold also received an endorsement from Ray Dalio’s Bridgewater Associates, the world’s largest hedge fund.

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