Gold hovered near two-month highs on Monday, as escalating violence in Iraq and geopolitical tensions supported the metal's safe-haven appeal.
Bullion ended modestly higher in tentative trading, as investors refrained from making aggressive bets. Spot gold was little changed at $1,317 an ounce. The metal, which posted its best week in three months on Friday, rose to a two-month high of $1,321.90 in the previous session, although it closed down 0.5 percent. U.S. gold futures for August delivery settled up $1.80 at $1,318.40.