Gold prices rose on Tuesday, hitting their highest in nearly a week as the US dollar weakened and investors awaited potential US action against suspected use of chemical weapons in Syria. Trump on Monday promised quick, forceful action in response to a deadly suspected chemical weapons attack in Syria, appearing to suggest a potential military response.
"Geopolitics is taking the main driving seat this week, so gold has potentially got some room for the upside," said Jonathan Butler, commodities analyst at Mitsubishi in London. "A lot will hinge on what is happening geopolitically between Russia, Syria, Iran and all sorts of other countries that could be potentially drawn into this."
Spot gold was up 0.4 percent at $1,341.29 an ounce by 1:35 p.m. EDT (1735 GMT), its highest since April 4. June US gold futures settled up $5.80, 0.4 percent, at $1,345.90 per ounce. Gold is often seen as a store of value during times of geopolitical and economic uncertainty.
Gold got a boost as the dollar index dipped to a two-week low against a basket of currencies. The dollar had risen earlier after Chinese President Xi Jinping's promise to cut import tariffs eased concerns about a trade conflict. Silver gained 0.7 percent at $16.57 an ounce. The session high was $16.65, a one-week high.
Platinum fell 0.1 percent at $930.80 an ounce, while palladium rose 2.3 percent at $950.72 an ounce, after touching $961.30, a 12-day high. Platinum fell back to a discount to palladium, after rising to a premium last Thursday. Last September, palladium gained the upper hand over platinum for the first time in 16 years.
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