• Gold hit a five-month high on Monday as the dollar weakened with investors taking refuge in safe-haven assets in the wake of rising geopolitical tensions over North Korea.
• Spot gold was up 0.5 percent at $1,291 per ounce as of 0239 GMT, after hitting its highest since early November at $1,295.42.
• Last week, the metal rose 2.5 percent in its biggest weekly gain since June last year.
• North Korea on Sunday made what was believed to be a failed missile test launch, increasing geopolitical risks. Regional tensions have risen over the past weeks as U.S. President Donald Trump has taken a tough rhetorical line with Pyongyang.
• "Gold will likely retain a measure of strength heading into the French elections in about one week's time, while ongoing tensions in North Korea should also keep the markets rather nervous," said INTL FCStone analyst Edward Meir.
• With the first round of France's presidential election on April 23, an unpredictable outcome is pushing some pollsters to calculate the most extreme runoff scenarios after Trump's surprising U.S. presidential win in November and Britain's unexpected exit from the European Union in July.
• The bullish sentiment in gold was underscored by data showing speculators increased their net long positions for a fourth straight week to April 11.
• Uncertainties over Trump's policy towards North Korea have been growing since the U.S. Navy fired 59 Tomahawk missiles at a Syrian airfield on April 6.
Adding to these concerns, the U.S. military last week dropped the largest non-nuclear device it has ever used in combat on a network of caves and tunnels used by Islamic State in eastern Afghanistan.
• "Gold is trading with an upward bias with the $1,300 level just in sight... We expect any dips in prices to be eagerly sought by traders," said Jeffrey Halley, a senior market analyst at OANDA.
• Spot gold is expected to rise to $1,303 per ounce as it has broken above a resistance at $1,282, according to Reuters technical analyst Wang Tao.
• Gold prices rose as a dour mood prevailed in thin holiday trade. Stocks in Japan – one of the few major markets not closed for the Easter Monday holiday – declined in a move that appeared linked to geopolitical jitters after North Korea conducted a ballistic missile test (albeit unsuccessfully).
Investors appear concerned about escalation after reports emerging Friday said the administration would adopt a policy of “maximum pressure and engagement” in their approach to relations with Pyongyang. US Vice President Mike Pence is on a 10-day trip in the region to, among other things, pitch the new approach.
Scheduled comments from Fed Vice Chair Stanley Fischer are in focus from here. Reaffirmation of the central bank’s intent to continue tightening amid signs of a significant slowdown in the first quarter may weigh on the yellow metal, though downward follow-through may be limited as political concerns persist.
• GOLD TECHNICAL ANALYSIS – Gold prices continue to push higher, with buyers setting their sights on the $1300/z figure. Breaking above the 1302.90-08.00 area (76.4% Fibonacci expansion, former support) on a daily closing basis exposes the 100% levelat 1336.19. Alternatively, a move back below the 61.8% Fib at 1282.31 targets the 1263.87-65.66 region (50% expansion, February 27 high).
Reference: Reuters, DailyFX
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