Gold trimmed early losses on Tuesday after a major exchange of artillery fire on the Korean peninsula boosted appetite of the safe-haven asset, as well as the dollar. Spot gold moved back to positive territory briefly after falling as much as 0.6 percent to $1,357.7 earlier in the day. It was trading at $1,364.15 an ounce at 0742 GMT, down 0.1 percent.
Spot gold is expected to rally towards $1,380 per ounce as it completed a consolidation between $1,342 and $1,363, and is poised to rise further, according to Reuters market analyst Wang Tao. Spot silver lost nearly one percent to $27.56 an ounce.