Gold rose Monday to its highest settlement price since the first week of June as a spike in tensions between the United States and North Korea boosted demand for the precious metal. However, sentiment turned neutral early Tuesday, as investors look for clues about any potential monetary policy changes during the US Federal Reserve’s three-day symposium of global central bankers.
Gold last week briefly broke above the key level of $1300 per troy ounce following a terrorist strike in Barcelona. Data from the US Commodity Futures Trading Commission released Friday showed net long positions in gold contracts surged 30.00% during the week ended Tuesday. Gold was last seen trending around the $1285-mark. On the downside, $1280 is likely to provide support for prices, while any rally could face resistance around $1301 per ounce.