Gold prices increased early on Monday, retreating from a two-month low, as renewed concerns regarding North Korea's nuclear ambitions fueled safe-haven demand for the yellow metal and added pressure on the dollar.

Spot gold rose 0.3 percent to $1,278.81 per ounce. It fell to its weakest since early August on Friday.

U.S. gold futures for December delivery was up 0.5 percent to $1,281.50 an ounce.

Hedge funds and money managers trimmed their net long positions in COMEX gold and silver contracts for the third consecutive week, in the week to Oct. 3, according to data from the U.S. Commodity Futures Trading Commission (CFTC).

The greenback was stable versus the yen on Monday, as it pulled back from 12-week peaks set the previous week, as a result of renewed focus on geopolitical risks against a background of concerns that North Korea could be bracing for another missile test.

North Korean leader Kim Jong Un recently said his nuclear weapons were a “powerful deterrent” that guaranteed its sovereignty. Pyongyang is preparing to test a long-range missile which it believes can hit the west coast of the United States, according to a Russian lawmaker.

The material has been provided by InstaForex Company –


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