- Spot gold was up 1% at $1,503.10 per ounce as of 0739 GMT.
- U.S. gold futures rose 0.8% to $1,510.70 per ounce.
Gold prices jumped 1% on Monday as attacks on Saudi Arabia's oil facilities dented risk appetite, boosting demand for the safe-haven bullion, while investors awaited for clues on monetary easing from major central banks this week.
Spot gold was up 1% at $1,503.10 per ounce as of 0739 GMT. Prices had dipped 1.2% in the previous week on hopes that an end to the U.S.-China trade tiff could be near.
U.S. gold futures rose 0.8% to $1,510.70 per ounce.
The attacks on Saudi oil installations have lead to a rotation of interests out of stocks and into safe-havens, said OANDA analyst Jeffrey Halley.
The risk-averse sentiment in the market underpinned the bullion, often seen as an alternative investment during times of political and financial uncertainty.
With escalating tensions in the Middle East and hopes of more stimulus measures from major central banks, the next target for gold will be $1,530, Halley added.
Yemen's Iran-backed Houthi rebel group claimed responsibility for the attack over the weekend on the world's biggest oil-processing facility.
However, a senior U.S. official said that evidence indicated Tehran was behind it, and President Donald Trump said the United States was "locked and loaded" for a potential response to the attack, souring its already strained relations with Iran.
The event hurt risk sentiment in the markets, with Asian equities trading lower, and the safe-haven yen up 0.4% against the dollar.
Investors also await the outcome of the U.S. Federal Reserve and Bank of Japan's policy meetings on Wednesday, for signals on their future policy path.
"(The Saudi attacks) are supportive for gold, but prices are still under pressure as investors are awaiting the Fed's announcement," said Hareesh V, head of commodity research at Geojit Financial Services, adding that $1,465 was the current support level for gold.
Central banks globally are facing increasing pressure to dole out monetary support for flagging economies as the U.S.-China trade dispute hurt trade and business sentiment. Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar.
Dismal Chinese data indicating that industrial production had grown at its weakest pace in 17-1/2 years also weighed on market sentiment.
Spot gold could retest resistance at $1,524 per ounce, as it has temporarily bottomed around a support at $1,480, said Reuters technical analyst Wang Tao.
Among other precious metals, silver jumped as much as 3% to $18 an ounce and platinum was up 0.7% at $954.34. Meanwhile, palladium rose 1.2% to $1,626.11 per ounce.