Gold rises as North Korea missile launch boosts safe-haven appeal

LONDON (Reuters) - Gold prices rebounded from seven-week lows on Tuesday after North Korea fired a missile into Japanese waters, raising geopolitical tensions and boosting bullion's safe-haven appeal. North Korea said it successfully test-launched an intercontinental ballistic missile, days before leaders from the Group of 20 nations are due to discuss steps to rein in Pyongyang's weapons programmes. Gold is typically seen as a store of value and therefore a safe-haven investment in times of economic and political uncertainty, when investors tend to sell riskier assets such as stocks. World shares, oil and bond yields pulled back on Tuesday as North Korea's long-range missile test and July 4 holidays for U.S. markets curbed investor appetite for risk. Nifty Trading Tips

Spot gold was up 0.3 percent at $1,223.37 an ounce by 1345 GMT, while U.S. gold futures climbed 0.3 percent to $1,222.60 an ounce. "The market is turning to gold over the conflict in North Korea," Danske Bank senior analyst Jens Pedersen said. "But the market isn't pricing in a further deterioration in relations because this conflict has been going on for a while." Gold fell 1.7 percent on Monday, the most in one day since November and reaching its lowest point since May. Hedge funds and other money managers reduced their net long positions in COMEX gold and silver for a third straight week in the week to June 27, U.S. Commodity Futures Trading Commission data showed. Future & Option Trading Tips