Gold edged up on Tuesday, with investors shying away from riskier assets after North Korea fired a missile that landed in Japanese waters, although the metal stayed near a seven-week low hit the day before. North Korea on Tuesday said it successfully test-launched an intercontinental ballistic missile (ICBM), days before leaders from the Group of 20 nations are due to discuss steps to rein in Pyongyang's weapons programmes.
"The North Korean missile launches are becoming second nature ... but some jitters remain on escalation," said Stephen Innes, head of trading for Asia Pacific at OANDA in Singapore. Gold is often used as an alternative investment during times of political and financial uncertainty. Spot gold had risen 0.4 percent to $1,224.71 per ounce by 0734 GMT. On Monday, it fell 1.7 percent in its biggest one-day percentage loss since November, touching its weakest since May 11 at $1,218.31 an ounce.
US gold futures for August delivery climbed 0.4 percent to $1,224.50 an ounce. The potential for any sort of disagreement on trade, investment, and security between US President Donald Trump and other European leaders at the G20 summit is also providing some geo-political support for gold, said NAB analyst John Sharma.
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