Investing.com - Gold prices rose to their highest level in around six weeks in European trade on Monday, as market players monitored mounting geopolitical tension in the Middle East as well as the fallout from the weekend terror attack in London.
Comex gold futures rose to a session peak of $1,284.67 a troy ounce, a level not seen since April 20. It was last at $1,284.18 by 3:25AM ET (0725GMT), up $.4.00, or about 0.3%. Meanwhile, spot gold was at $1,281.54.
Also on the Comex, silver futures tacked on 2.5 cents, or about 0.2%, to $17.54 a troy ounce. It rose to $17.59 in overnight trade, a level not seen since April 26.
Saudi Arabia, Egypt, the United Arab Emirates and Bahrain severed their ties with Qatar on Monday, accusing it of supporting terrorism, in an unprecedented breach between the most powerful members of the Gulf Cooperation Council.
The coordinated move dramatically escalates a dispute over Qatar's support of the Muslim Brotherhood, the world's oldest Islamist movement, and adds accusations that Doha even backs the agenda of regional arch-rival Iran.
A split between Doha and its closest allies can have repercussions around the Middle East where Gulf states have used their financial and political power to influence events in Libya, Egypt, Syria, Iraq and Yemen.
Elsewhere, market players reacted to Saturday’s terror attack in London - the third attack in Britain in recent months - which left seven dead and scores injured after a van mowed down pedestrians on London Bridge.
On Sunday, U.K. police said they arrested 12 people in east London in connection with the attack. Islamic State has claimed responsibility.
The attack came days ahead of Thursday's U.K. election, in which polls show British Prime Minister Theresa May's lead over the opposition Labour Party has narrowed but is still intact.
Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk.
Prices of the yellow metal drew additional support after last week's disappointing U.S. employment report saw investors temper expectations for more rate hikes by the Federal Reserve in the second half of the year.
Elsewhere in metals trading, platinum ticked up 0.1% to $954.45, while palladium added 0.5% to $837.92 an ounce.
Copper futures lost 3.0 cents to $2.545 a pound.