Gold was a touch softer yesterday but remained within sight of a two-month high above $960 touched in the previous session, as bullion retained its sheen in the face of dollar weakness.
Crude oil's rise to a six-month high has also benefited gold, which is often bought both as an alternative to holding the dollar and as an inflation hedge.
Gold markets showed little initial reaction to South Korea's nuclear test. Public holidays in the United States and the United Kingdom could also have been a factor in the lack of market reaction, analysts said.
Gold was at $954.20 per ounce, down 0.2 per cent from New York's close of $955.85. In Asia, gold traded little changed near the highest in more than two months as a weakening dollar spurred interest in the precious metal as a haven investment.
Gold for immediate delivery was at $955.70 in Singapore. The metal advanced to $961.33 May 22, the highest since March 20. Gold for June delivery in New York was down 0.3 per cent at $956.10.
Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, rose for the first time since May 13.
Assets stood at 1,118.76 metric tonnes on May 22, said the company's website.
