Gold prices inched up to their highest in more than a week on Tuesday, drawing support from geopolitical tensions and a softer dollar, but expectations of another US Federal Reserve interest rate hike this year curbed upside momentum. Spot gold was up 0.3 percent at $1,287.31 an ounce by 0653 GMT, after touching its highest since late September at $1,288.70 earlier in the session.
US gold futures for December delivery climbed 0.4 percent to $1,290 per ounce. Geopolitical tensions and uncertainty around what US President Donald Trump might do about North Korea kept a certain degree of risk aversion alive in markets, and that was providing temporary support to gold prices, said Mark To, head of research at Hong Kong's Wing Fung Financial Group. Reuters technical analyst Wang Tao sees spot gold still targeting $1,299 per ounce, as it has broken a resistance at $1,281.