Gold Rises Along With North Korea Tensions

Dow goes for 10 record highs in a row

It's not the first time North Korea has threatened Guam, which is a crucial, strategic hub for US forces in the Pacific.

North Korea claimed on Wednesday that it is reviewing military options to fire four of its Hwaseong-12 intermediate-range ballistic missiles to hit areas surrounding the US territory of Guam.

Lockheed Martin, Raytheon, General Dynamics and Northrop Grumman all rose and the Dow Jones U.S. defense index was up 1.6 percent after hitting a record high. THAAD, or the Terminal High Altitude Area Defense, is one of the U.S.'s main weapons against offensive missiles.

As one anonymous U.S. military official told Reuters news agency: "Just because the rhetoric goes up, doesn't mean our posture changes".

Like other USA territories, Guam has a sometimes complicated relationship with the US mainland but many across the island say despite the threats and concerns they feel reassured and protected by the military - especially in times of tense, geopolitical sparring.

North Korea has made a new threat against Guam via their state run news agency.

How did it become a USA territory?

"This is an experimental system - we could potentially miss or hit, we don't know for sure". Chamorros are the indigenous people of Guam. Having this capability, it reasons, would protect the regime by raising the costs of toppling it. Kim Jong-un does not want to go the way of Libya's Muammar Gaddafi or Iraq's Saddam Hussein.

North Korea has said it is working on a plan to fire missiles in to the sea off the coast of Guam.

North Korea, no stranger to bluffing, frequently uses extremely bellicose rhetoric with warnings of military action to keep its adversaries on their heels.

The tiny US territory of Guam feels a strong sense of patriotism and confidence in the American military, which has an enormous presence on the Pacific island.

"The system's created to engage multiple targets simultaneously, so that should be quite feasible to do", Bennett said.

Experts say you should not panic - just yet.

Guam's status as an "unincorporated territory" of the United States means it is essentially considered part of the country for military purposes, despite residents not being able to vote.

That tendency has been on display repeatedly, including in his firing of the former Federal Bureau of Investigation director who had been investigating his campaign's possible Russian Federation collusion, his "Muslim ban" comments that sank his travel ban in court, and siding with Saudi Arabia over Qatar in the Persian Gulf crisis just as his administration was trying to mediate.

The United States has long trumpeted its ability to defend against missiles that threatened the country's territory, which might be what Pyongyang is counting on. Mr Trump's approach has been to respond to tough language out of Pyongyang with tougher language, a strategy that has led North Korea to threaten to attack the American territory of Guam. "If the USA and China were to publicly break over North Korea, that would be a significant negative", said Christopher.

Oxford Economics pointed out in a Thursday research briefing that all parties involved stand to lose out from direct military confrontation, and despite the increase in threatening language that the posturing between the two nations had been going on for some time and that in time, cooler heads were likely to prevail. "As a result, asking to do that for the first time, if it does, great", he said.

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