Investing.com - Gold prices were higher during North American morning hours on Monday, kicking the week off with gains as a missile launch by North Korea was the latest event to add to concerns about rising geopolitical tensions.
Comex gold futures tacked on $6.00, or about 0.5%, to $1,232.35 a troy ounce by 9:15AM ET (14:15GMT). The precious metal fell to $1,223.00 on Friday, the lowest since February 15.
Spot gold was down $2.70 to $1,231.90 per ounce.
Geopolitical tensions were in focus after North Korea fired four ballistic missiles early on Monday, three of which landed in Japan's exclusive economic zone, an area extending about 230 miles out to sea from its coastline.
The move came just after Japanese media reported on Saturday U.S. Secretary of State Rex Tillerson is due to visit Japan, South Korea and China this month to discuss North Korea on his first trip to the region since he took up his post.
The news bolstered demand for perceived safe-havens such as the yen and gold, while weighing on U.S. Treasury yields.
U.S. political developments also remained in focus after President Donald Trump on Saturday accused his predecessor Barack Obama of wiretapping him during the 2016 election campaign, an accusation rejected by Obama and a top former intelligence official, even as the White House urged Congress to investigate the allegation.
Gains were limited on increasing signs given by Federal Reserve officials that the U.S. central bank is seriously considering raising interest rates this month.
Fed Chair Janet Yellen said on Friday that it “would be appropriate” for the U.S. central bank to raise its benchmark interest rate at its next meeting on March 14-15, should the U.S. economy continue to show robust growth in terms of jobs and inflation.
In the week ahead, global financial markets will focus on the monthly U.S. employment report due Friday, which could seal the deal for a Fed rate hike later this month.
Besides the employment report, this week's calendar also features U.S. data on factory orders, trade figures, ADP private sector nonfarm payrolls, weekly jobless claims and import prices.
Futures traders are pricing in around an 82% chance of a hike at the Fed's March 14-15 meeting, according to Investing.com’s Fed Rate Monitor Tool.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
Also on the Comex, silver futures for May delivery tacked on 14.0 cents, or 0.8%, to $17.88 a troy ounce.
Meanwhile, platinum was down 0.5% to $989.10, while palladium added 0.4% to $770.62 an ounce.
Elsewhere in metals trading, copper futures lost 3.8 cents, or about 1.4%, to $2.659 a pound after China cut its economic growth forecast to around 6.5% in 2017, compared with last year's goal of 6.5% to 7%.