Gold has been surging amid the weakness in the dollar on the back of growing tensions between the US and North Korea. Pyongyang put on a massive military parade showcasing its capability over the weekend, which was followed by a failed missile launch. Ongoing tension in the Korean peninsula is likely to keep the markets nervous over the near-term as two more US aircraft carriers steaming towards the Korean Peninsula.
With the French elections beginning in under a week’s time, uncertainty is high, and should be enough to maintain safe-haven demand for gold. Bullion reversed from a five-month high in Monday trading, with $1300 as the immediate resistance on the upside. A close above this level could see prices rally all the way to $1320. Bullion was last seen trading around $1283 per troy ounce on Tuesday.