25.09.201713:51:00UTC+00Gold Rallies As North Korea Rattles Sabre

Gold futures rebounded Monday, taking back last week's losses amid geopolitical tensions and weak stock markets.

Bolstered by safe haven demand, December gold added $14 to $1311.50 an ounce, the highest since last Monday.

North Korean Foreign Minister Ri Yong Ho claimed recent comments by President Donald Trump represent a "declaration of war."

"Last weekend, Trump claimed that our leadership wouldn't be around much longer, and hence, at last, he declared war on our country," Ri said.

Euro area economic recovery is now firm and broad-based, and the latest data suggest that the momentum is set to continue in the period ahead and policymakers are more confident that inflation will converge at the target eventually, European Central Bank President Mario Draghi said Monday.

"The ongoing recovery is, crucially, driven by domestic forces, and the labor market has notably improved," Draghi said at a hearing at the European Parliament in Brussels.

Meanwhile, German Chancellor Angela Merkel won a fourth term in office.