Gold settled about 1 percent higher on Tuesday as the dollar and equity markets fell on signs the European Central Bank may not recur to more stimulus, while renewed tensions in Ukraine kept risk appetite subdued.
The metal gained further support after Iraq's central bank said it might buy more gold in the next few months, having bought 60 tonnes over the past two.
U.S. gold futures for June delivery settled 0.8 percent higher at $1,309.10 an ounce.
Earlier, spot gold touched a session high of $1,314.43 an ounce, its highest level in two weeks. It was up 1.1 percent at $1,310 an ounce.