SINGAPORE: Gold rallied for a third session in a row, paring earlier losses as investors sought safety in the metal amid escalating tensions in the Korean peninsula and the Middle East, and worries over the Chinese economy.
Spot gold rose 1.2 percent to $1,090.90 after earlier slipping 0.3 percent. Gold has gained 1.6 percent in the last two sessions, after touching a four-week high of $1,083.30 on Monday.
“It is supposed to be a risk-off trade but gold is actually struggling at the moment,” said a precious metals trader in Hong Kong. “It should have reacted more aggressively.”
