Gold hit a near one-month high on Wednesday as investors grew more concerned over the global economic outlook and started looking for safe-haven assets on signs that the US presidential election race was tightening. The mounting anxiety over the elections after the renewal of the FBI probe into Democratic candidate Hillary Clinton's emails has left investors favouring gold and other safer assets over riskier ones like stocks.
"Uncertainty leading up to the US election is likely to provide support to the precious complex," MKS PAMP Group trader Jason Cerisola said.
Spot gold was up 0.4 percent at $1,292.81 an ounce at 0715 GMT. Bullion touched its highest since Oct. 4 at $1294.43 per ounce.
US gold futures rose 0.47 percent to $1,294.00 per ounce. Earlier in the session, it touched a one-month high at $1,295.70.
Spot gold may end its bounce around a resistance at $1,293 per ounce, as suggested by its wave pattern and a Fibonacci ratio analysis, according to Reuters technical analyst Wang Tao.
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