Gold steadied on Wednesday after hitting a five-month peak as political tensions simmered, leaving investor interest in safe havens like the precious metal largely intact.
Tarnishing an otherwise brightening outlook for global growth, tensions continued to boil in the Korean peninsula and the Middle East, while worries over the upcoming French presidential election persisted.
Spot gold inched down 0.11 percent to $1,272.71 per ounce after hitting its strongest since Nov. 10 at 1,279.80 earlier in the session.
U.S. gold futures for June delivery rose $3.90 to settle at $1,278.31 after hitting $1,281.80 earlier in the session, the highest level since Nov. 10.
Gold tends to gain when rate hike expectations recede because lower rates reduce the opportunity cost of holding non-yielding bullion.
The dollar was flat versus a currency basket after falling on Tuesday, though a general risk-off mood that has prompted investors to sell the greenback prevailed. Chinese President Xi Jinping on Wednesday stressed the need for a peaceful solution for the Korean peninsula on a call with U.S President Donald Trump.