If the US dollar weakens, demand for gold and other safe havens could continue to rise.

Gold prices have increased sharply as investors are spooked by nuclear war threats from Kim Jong-un.

At the same time the FTSE 100 and Dow Jones along with stock markets across the world have fallen as tensions rise between North Korea and the US president.

Mr Otunuga addded: "Market jitters from the escalating geopolitical tensions between the US and North Korea have brought Gold back into fashion this week, with the yellow metal hitting a fresh two-month high above $1288, during early hours on Friday.

"In times of uncertainty, investors continue to be attracted to Gold and further upside is likely, if US/North Korean anxiety supports the flight to safety.

"Although the metal is currently following a positive trajectory on the daily charts, market players might decide to remain on the sidelines ahead of the US inflation report, released later today.

"It should be kept in mind that the inflation figures have the ability to impact the prospects of higher US interest rates, and this will possibly have a direct correlation to the value of Gold."