Goldbroke above $1,300 last week and is on a steady rise as tensions continue to rise between North Korea and the U.S. Some market experts now predict the precious metal could strengthen further.
"There is a combination of events driving gold higher, including both political uncertainty and hedge fund buying. If these extreme political circumstances continue it could drive the price to $1,400," Nizam Hamid, ETF strategist at WisdomTree said in a press comment on Thursday.
The current period of elevated uncertainty, both in terms of U.S. domestic policy and in foreign diplomacy, is supporting gold prices, according to Hamid.
"Given where valuations are for other asset classes, there is real potential for gold to continue to rally, especially if mainstream investors get in on the trade."
Gold is currently trading around $1,340 per ounce. It is up 2.45 percent over the past seven days and year to date is up around 16 percent. Investors tend to move into safe-haven assets such as gold, swiss franc and the Japanese yen in times of uncertainty and turmoil as traditional assets such as stocks and bonds could prove to be a volatile investment.