Gold prices rose for a third day on Tuesday to its highest since November as mounting geopolitical tensions over a new North Korean missile launch stoked demand for safe-haven assets and weighed heavily on the dollar and equities.
Spot gold rose 0.4 percent to $1,314.52 per ounce, after earlier touching its highest since Nov. 9 at $1,322.33.
Gold gained 1.4 percent in the previous session in its biggest one-day percentage rise since mid-May.
U.S. gold futures for December delivery settled up 0.3 percent at $1,318.90.
South Korea and Japan said the missile North Korea launched early on Tuesday landed in Pacific waters east of Hokkaido after flying over the northern Japanese island, in a sharp escalation of tensions on the Korean peninsula.
"North Korea's missiles over the Japanese Hokkaido islands obviously fueled buying for the flight for safety kind of money including the Japanese yen and gold," said Yuichi Ikemizu, Tokyo branch manager at ICBC Standard Bank.
The news saw equities plunging and the yen touching four-month highs against the dollar.