Gold inched higher on Tuesday, supported by global political uncertainties, after touching a five-week low earlier in the session as a key US Federal Reserve official reaffirmed the central bank's hawkish stance on interest rate hikes. Risk aversion due to Brexit, concerns over US President Donald Trump's ability to carry out financial reforms, election results in Europe and Middle East turmoil have provided some support for gold, said Mark To, head of research at Hong Kong's Wing Fung Financial Group. "We can see things are getting more complicated and investors have to take some time to put things into context," To said.
Spot gold was up 0.3 percent at $1,246.82 per ounce, as of 0809 GMT. US gold futures rose 0.1 percent to $1,247.8 per ounce. Spot gold may break a resistance at $1,248 per ounce and rise towards the next resistance at $1,251, as it failed to break a support at $1,243, according to Reuters technical analyst Wang Tao.
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