Maybe more than just a coincidence.

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Gold futures leapt while stock markets and Treasury yields fell after South Korea reported a naval ship sank off the island of Baengnyeong in the West Sea, near the border with North Korea.

"We had an oversold condition and when the Korea news hit the desks, gold took off," said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago.

Gold futures for June delivery rose $9.90, or 0.9%, to US$1,104 an ounce at 11:51 a.m. on the Comex in New York, after earlier rising as much as 1.3%.

U.S. stocks trimmed gains as concern that tensions between North and South Korea were escalating snuffed out most of an early advance.

http://www.financialpost.com/news-sectors/story.html?id=2730690