Investing.com - Gold prices rose on Tuesday, as investors piled into safe haven assets amid continued uncertainty surrounding the outcome of the French Elections and rising geopolitical tensions in North Korea, Russia and Syria.
Gold for June delivery on the Comex division of the New York Mercantile Exchange added $1.60, or 0.12%, to $1,293.50 a troy ounce by 13:59 EDT.
Gold recovered from early session lows, to trade near five-month highs, as the flight to safety trade resumed, after UK Prime Minister Theresa May announced plans to call an early election.
Although UK opinion polls suggested PM Theresa May would significantly increase her parliamentary majority of 17 during the election, the decision to call a snap election, after she said that the next general election would be held as scheduled in 2020, represents an element of risk.
Meanwhile, uncertainty surrounding the outcome of the French Presidential elections propped up demand for safe-haven gold, as investors braced for the outcome of the first round of French Presidential elections, which is set to be held on April 23.
Geopolitical tensions weighed on the greenback, as the US Dollar Index Futures fell to a session low of 99.40, making dollar-denominated commodities such as gold more attractive.
Dollar-denominated gold is sensitive to moves in the dollar – A dip in the dollar makes dollar-denominated assets such as gold cheaper for holders of foreign currency and thus, increases demand.
Silver futures traded at $18.320, a troy ounce while copper fell 2.58% to $2.529.
Platinum lost 1.14% to $979.80 while Natural Gas dipped by 1.11% to $3.128.