• Gold prices inched up to their highest in more than a week on Tuesday, drawing support from geopolitical tensions and a softer dollar, but expectations of another U.S.Federal Reserve interest rate hike this year curbed upside momentum.
Spot gold was up 0.3 percent at $1,287.31 an ounce by 0653 GMT, after touching its highest since late September at $1,288.70 earlier in the session.
U.S. gold futures for December delivery climbed 0.4 percent to $1,290 per ounce.
• Geopolitical tensions and uncertainty around what U.S. President Donald Trump might do about North Korea kept a certain degree of risk aversion alive in markets, and that was providing temporary support to gold prices, said Mark To, head of research at Hong Kong's Wing Fung Financial Group.
Russia and China called for restraint on North Korea on Monday after Trump warned over the weekend that "only one thing will work" in dealing with Pyongyang, hinting that military action was on his mind.
Fed funds futures showed traders were pricing in a nearly 90 percent chance of a rate hike in December.
"Most of the central banks are going to tighten or have renormalisation of monetary policy in the post-financial-tsunami era. This point is really restraining the upside for goldprices. I think $1,300 should be a resistance level," To said.
• Reuters technical analyst Wang Tao sees spot gold still targeting $1,299 per ounce, as it has broken a resistance at $1,281.
• "We still reiterate our view ... that the precious metal will likely remain under pressure over the short-term, as we see a firmer dollar, resilient equity markets, rising interest rates and slightly more quieter geopolitical conditions, all combining to keep serious rallies in check," INTL FCStone analyst Edward Meir said in a note.
• In other precious metals, silver rose 0.6 percent to $17.04 an ounce, having hit a two-week high of $17.08 earlier.
• Platinum was up 0.7 percent at $917.75 an ounce and palladium was 0.4 percent higher at $933 an ounce.
Reference: Reuters
Thai
Eng