Gold unchanged

Bengaluru

Gold prices on Monday held around their highest in nearly seven weeks as tensions on the Korean peninsula boosted safe-haven demand for the metal and as the US dollar hovered close to multi-month lows.

The United States flew two supersonic B-1B bombers over the Korean peninsula in a show of force on Sunday and the US ambassador to the United Nations said China, Japan and South Korea needed to do more after Pyongyang's latest missile tests.

"I think (the market) is cautious about the situation in North Korea and investors tend to go long on gold (at times like these)," said Yuichi Ikemizu, Tokyo branch manager at ICBC Standard Bank. "I think gold will stay firm this week." 

Spot gold hit its highest since June 14 at $1,270.98 in early trade, but was down 0.1 percent at $1,267.93 per ounce. It gained about 1.1 percent last week in its third consecutive weekly gain.