Gold added to an overnight surge in prices on Tuesday, as escalating geopolitical tensions in the Middle East and a global stock market rout triggered safe-haven bids for the metal. Spot gold had risen 0.3 percent to $1,077.15 an ounce by 0718 GMT. On Monday, the metal jumped as much as 2.2 percent to a four-week high of $1,083.30, before ending the day up 1.3 percent.
"The Middle East tensions will continue to support gold for the time being," said a trader in Hong Kong. "If the decline in stock markets extends to another session, that may also help." Bullion, often seen as a alternative investment during times of geopolitical and financial uncertainty, is benefiting from a shift away from risk along with the Japanese yen and US bonds.
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