Investing.com - Gold gained in Asia on Wednesday as heightened political risk regionally and in Britain and the US supported the yellow metal.
Gold futures for February delivery on the Comex division of the New York Mercantile Exchange rose 0.21% to $1,267.50 a troy ounce.
Yonhap reported that US B1 bombers plan flights over the Korean peninsula Wednesday as part of an annual military exercises that rile Pyongyang. The week-long drills come a week after North Korea tested what it called its most advanced ICBM and warned that the exercises would push the Korean peninsula to "the brink of nuclear war."
Elsewhere, Sky News reported that an Islamist suicide attack was planned against Downing Street and British PM Theresa May, but was foiled by police and security services.
There was little immediate reaction to reports that Deutsche Bank (DE:DBKGn) received a subpoena from US special counsel Robert Mueller related to his Russia election meddling investigation and the bank's business with President Trump.
Jay Sekulow, one of Trump's personal lawyers, said Deutsche Bank has not received any subpoena for financial records relating to the president as part of Mueller's probe.
"We have confirmed that the news reports that the Special Counsel had subpoenaed financial records relating to the president are false,” Sekulow said. “No subpoena has been issued or received. We have confirmed this with the bank and other sources."
Overnight, gold prices fell to six-week lows on Tuesday as dollar strength continued on the back of recent investor optimism surrounding tax reform.
Gold prices fell as bullish sentiment in risk markets continued amid growing investor expectations that the Senate and House of Representatives will reconciled their respective bills, ensuring that the final bill will reach President Donald Trump for approval before year-end.
Also weighing on the dollar was ongoing expectations that the U.S. Federal Reserve will raise interest rates for third time this year at the conclusion of its next meeting on Dec.13.
According to investing.com’s fed rate monitor 100% of traders expect the Federal Reserve to raise rates in December.
Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.