2018.05.1501:24:00UTC+00Gold Prices Climb on Safe-Haven Support

Gold prices were slightly higher on Tuesday on safe-haven buying, but upside potential for the metal was limited due to a strong dollar and outlook for further interest rate hikes in the United States.

Spot gold increased 0.1 percent to $1,313.54 per ounce while U.S. gold futures for June delivery were, however, down 0.4 percent at $1,313.40 per ounce.

The rising tensions in Gaza induced some safe-haven buying for gold earlier in the session, ANZ analysts said in a note. Israeli troops shot dead dozens of Palestinian protesters on the Gaza border on Monday when the high-profile opening of the U.S. embassy to Israel in Jerusalem by the Trump administration raised tension to boiling point after weeks of demonstrations.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, dropped 0.17 percent to 856.17 tonnes on Monday.

In other precious metals, silver was unchanged at $16.50 per ounce. Platinum climbed 0.2 percent to $906.50 per ounce, while palladium lost 0.1 percent at $994.50.