Investing.com - Gold prices hit a five-month high of Wednesday after rallying more than 1.5% in the previous session as heightened geopolitical tensions underpinned safe haven demand for the precious metal.
Gold for June delivery was at $1,276.25 on the Comex division of the New York Mercantile Exchange by 08.00 GMT, after going as high as $1,281.75, the most since November 9.
Investors continued to play it safe as concerns over U.S. military action against Syria and North Korea along with worries over the French presidential election spurred a move into assets perceived as less risky.
Chinese President Xi Jinping on Wednesday called for a peaceful resolution of escalating tensions on the Korean peninsula during a call with U.S President Donald Trump.
Tensions continued to mount amid fears that North Korea could soon conduct fresh nuclear tests or missile launches.
Trump, who has urged China to do more to rein in North Korea, has said the U.S. is prepared to take action against North Korea, with or without Beijing’s help.
At the same time, tensions between the U.S. and Russia simmered following last week's U.S. cruise missile strikes on a Syrian air base.
Gold, whose market value typically rises in times of uncertainty, is up around 11% this year, as investors have become increasingly concerned about geopolitical tensions.
Some investors increase their gold allocations in turbulent times, believing the metal will hold its value better than other assets if markets turn rocky.
Elsewhere in metals trading, silver was up 0.37% at $18.32 a troy ounce. Platinum was steady at $969.3 a troy ounce, while copper fell 0.92% to $2.58 a pound.