PRECIOUS-Gold hits 10-mth high in wake of N.Korea nuclear test

    Sept 4 (Reuters) - Gold prices hit their highest in nearly
10 months early on Monday after North Korea's latest and most
powerful nuclear test drove investors towards safe-haven assets.

    * Spot gold        was up 0.8 percent at $1,335.31 per ounce
by 0041 GMT, after earlier touching its strongest since Nov. 9
at $1,336.79.
    * U.S. gold futures         for December delivery were up
0.8 percent at $1,340.90.
    * The Japanese yen and sovereign bonds also climbed on
Monday as North Korea's nuclear test provoked the usual
knee-jerk shift to safe havens, while futures pointed to a
difficult day for global equities.                   
    * North Korea on Sunday conducted its sixth nuclear test,
which it said was of an advanced hydrogen bomb for a long-range
missile, prompting the threat of a "massive" military response
from the United States if it or its allies were threatened.
    * South Korea's military said on Monday its air forces and
the army carried out a missile drill early in the day in
response to North Korea's nuclear test, adding the drills
targeted the area where the test had been carried out.
    * Trade negotiators from Canada, the United States and
Mexico presented more proposals for a renewed North American
Free Trade Agreement on Friday and tried to put behind them
threats from U.S. President Donald Trump to pull out of the
    * The European Central Bank is likely to announce a
reduction of its monthly asset purchases in October, according
to a majority of economists in a Reuters poll, who also said
they expect the central bank to shut down the programme by the
end of next year.             
    * The European Central Bank will discuss how to initiate a
careful withdrawal from its asset purchase programme,
rate-setter Ewald Nowotny said on Friday.             
    * Traders held to expectations Friday that the Federal
Reserve would probably wait until the middle of 2018 before
raising rates, after a government report showed employers added
fewer jobs last month than expected.                          
     0830    U.K.       Construction PMI           Aug 
     0830    Euro Zone  Investor sentiment index   Sep  
     0900    Euro Zone  PPI                        Jul 

 (Reporting by Apeksha Nair in Bengaluru; Editing by Joseph