Gold prices rose for a third straight session on Tuesday to their highest since November as mounting geopolitical tensions over a new North Korean missile launch stoked demand for safe-haven assets and weighed heavily on the dollar and equities. Spot gold was up 0.6 percent at $1,317.47 per ounce, as of 0627 GMT, after earlier hitting $1,322.33, its highest since Nov. 9.
Gold gained 1.4 percent in the previous session in its biggest one-day percentage rise since mid-May. US gold futures for December delivery rose 0.6 percent to $1,323.00 per ounce. South Korea and Japan said the missile North Korea launched early on Tuesday landed in Pacific waters east of Hokkaido after flying over the northern Japanese island, in a sharp escalation of tensions on the Korean peninsula.
"North Korea's missiles over the Japanese Hokkaido islands obviously fuelled buying for the flight for safety kind of money including the Japanese yen and gold," said Yuichi Ikemizu, Tokyo branch manager at ICBC Standard Bank. Spot gold is expected to rise to $1,337 per ounce, as it has cleared a resistance at $1,312, said Reuters technical analyst Wang Tao.
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