Spot gold was up 0.3 percent at $1,237.04 an ounce as of 0357 GMT, not far off Tuesday's $1,239.68, the highest since July 17.
U.S. gold futures were up 0.7 percent at $1,239.70 an ounce.
· "After the massive sell-off in global equities, investors are looking for a safe-haven shelter. They are starting to diversify and look at bullion as a means of value maintenance, with no end in sight appearing for the bear market,"said Benjamin Lu, a commodities analyst with Phillip Futures.
"We see more upside potential for gold prices, and if it continues to move up and reaches the $1,245 level, it could trigger a series of short covers, pushing prices to $1,255."
· Concerns ranging from U.S.-China trade disputes to Italy's budget woes and Brexit uncertainty have accelerated the flight to safety, said Lukman Otunuga, a research analyst with FXTM.
"The growing uncertainty created from U.S.-Saudi tensions and Italy's budget woes can already be reflected across financial markets with investors avoiding riskier assets. The risk-off environment should offer gold an opportunity to shine brightly," he said.
Spot gold may break a resistance at $1,238 per ounce, and edge up into a range of $1,252-$1,263, according to Reuters technical analyst Wang Tao.
· "The losses in global equity markets continue to provide support to the precious metals sector, with gold-backed ETFs recording strong inflows," ANZ analysts said in a research note.
Meanwhile, the dollar index, which measures the greenback against a basket of six major currencies, was down 0.2 percent.
· Among other precious metals, palladium was down 0.2 percent at $1,122.40 an ounce, drifting away from a record high of $1,150.50 an ounce marked on Tuesday.
· Silver rose 0.7 percent to $14.74 per ounce, while platinum was up 0.5 percent at $831.60 per ounce.
Reference: Reuters
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