north korea might pop another one

Oct. 17 (Bloomberg) -- Gold in Asia rose for a fourth day after South Korea said it's aware North Korea may be preparing to conduct a second nuclear explosion, boosting the precious metal's attraction as a haven.

U.S. spy satellites picked up vehicle movements close to the site of North Korea's nuclear test last week, ABC News reported yesterday. South Korea's government is aware of the signs of activity, a government official who declined to be identified said by phone in Seoul. Gold is up 4 percent since North Korea disclosed the test on Oct. 9.

The gold ``market is certainly nervous and any escalation could see gold test $605,'' Jonathan Barratt, managing director at Commodity Broking Services, said by phone from Sydney today.

Gold for immediate delivery rose as much as $2, or 0.3 percent, to $598 an ounce and traded at $597.20 at 11:00 a.m. Singapore time.

Some investors buy gold in times of unrest or geopolitical tension. The metal jumped 5.3 percent after the Sept. 11, 2001, terrorist attacks on the U.S.

Gold for delivery in December rose as much as $3.10, or 0.5 percent, to $601.60 an ounce in after-hours electronic trade on the Comex division of the New York Mercantile Exchange. The contract traded at $601 at 11:09 a.m. Singapore time.

A futures contract is an obligation to buy or sell a commodity at a set price for delivery by a specific date.