The yellow metal has surged to the highest level in six years as fresh US sanctions on Iran added to uncertainty in global markets, with semi-official Iranian Students News Agency reporting that the diplomatic path with Washington is closed forever, citing Foreign Ministry spokesman Abbas Mousavi.

Investors are also looking to the G-20 summit this weekend where Presidents Donald Trump and Xi Jinping are scheduled to meet to discuss trade, although US officials are downplaying expectations, insisting America was not prepared to compromise on demands for meaningful Chinese economic reforms. Another key event on traders watch list is Federal Reserve Chairman Jerome Powells speech in New York later on Tuesday, which will touch on monetary policy.

Bullions been on a tear this month as the dollar weakened after the Fed opened the door to an interest rate cut and other central banks also pivoted to a more dovish stance. Investors are taking note -- pouring into exchange-traded funds backed by the precious metal and boosting net long positions in US gold futures and options. Morgan Stanley said gold is its top commodity pick on a six-month view as the uncertain macroeconomic outlook adds to its appeal.

The global capital markets mood is shaky due to the fear of the unknowns and its this uncertainty that will continue to provide the jet fuel for an already high-octane gold market, Stephen Innes, managing partner at Vanguard Markets Pte, said in a note.

A significant withdrawal by investors from the US dollar, which intensified after last weeks Fed policy meeting, further adds to the glimmering gold market appeal, Innes added.

Spot gold climbed as much as 1.4% to $1,439.21, the highest since May 2013, and traded at $1,436.33 at 12:46 p.m. in Singapore. A gauge of the U.S. dollar hit a three-month low.

In other precious metals, silver rose 0.3%, platinum lost 0.1%, and palladium fell 0.2%.

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