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. FUNDAMENTALS * 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 treaty. * 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. DATA/EVENT AHEAD (GMT) 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 Radford)
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