The most active gold contract for February delivery climbed 16.4 U.S. dollars, or 1.06 percent, to settle at 1,568.8 dollars per ounce.
Concerns about tensions in the Middle East following the killing of an Iranian general by the United States upended appetite for assets considered risky and boosted traditional haven assets like gold.
The precious metal was also buoyed by a weaker greenback. The U.S. dollar index, which measures the buck against six rivals, went down 0.21 percent to 96.64 as of 1830 GMT.
Gold usually moves in opposite directions with the U.S. dollar, which means if the dollar goes strong, gold futures will fall as gold, priced in U.S. dollar, becomes expensive for investors using other currencies.
As for other precious metals, March silver went up 2.8 cents, or 0.15 percent, to close at 18.179 dollars per ounce. The April platinum dropped 24.1 dollars, or 2.43 percent, to settle at 966.2 dollars per ounce.
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