Gold rose more than 1 percent on Tuesday before losing part of its gains, but remains near a six-year high as the dollar tumbled to its lowest level in several months as rising tensions between the United States and Iran drive investors to buy safe haven gold.
Spot gold rose 0.4 percent to $ 1424.25 an ounce by 0550 GMT. Earlier in the session, the metal touched $ 1438.63, the highest level since May 14, 2013.
Gold is heading for a sixth straight session.
Gold futures in the United States jumped 0.7 percent to $ 1427.50.
Michael McCarthy, chief market strategist at CMC Markets, said bets on cutting interest rates, a weaker dollar and tensions in the Middle East were creating an ideal environment for gold price gains.
For other precious metals, silver fell 0.3 percent to $ 15.38 an ounce, while platinum settled at $ 809.93 an ounce.
Palladium fell 0.8 percent to $ 1522.63 an ounce. The metal had earlier hit $ 1545.87, its highest level since March 27.