Gold held near its highest in four weeks on Monday after rising almost 1 percent in the previous session, buoyed as geopolitical tensions boosted its safe-haven appeal. Spot gold was almost flat at $1,267.01 per ounce at 0801 GMT. On Friday, it climbed 0.9 percent to touch its strongest since May 1 at $1,269.50. US gold futures slipped 0.1 percent to $1,266.9.
"Asian trade on Monday was a relatively muted affair, with early session interest following a reported North Korean missile test soon fizzing out," Sam Laughlin, senior precious metals trader at MKS said in a note. Gold held a narrow range on Monday as Chinese markets were closed for a two-day break, he added. Chinese markets are closed on Monday and Tuesday for the Dragon Boat festival.
Spot gold may climb to $1,276 per ounce, as it has broken above a resistance at $1,264, said Reuters technical analyst Wang Tao. Political tensions surrounding US President Donald Trump are providing some safe-haven support for gold, OCBC analyst Barnabas Gan said. The market is also watching out for the Federal Open Market Committee meeting next month for any cues on US Federal Reserve's stance on interest rate hikes and balance sheet reduction intentions, Gan added.
"We remain friendly on gold and suspect that we will likely push higher over the course of the coming week," INTL FCStone analyst Edward Meir said in a note. "A weaker dollar, coupled with rising geopolitical tensions should keep the precious metal relatively buoyant."
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