Spot gold rose 0.6 percent to $1,316.90 per ounce by 0314 GMT, after earlier touching its highest since Nov. 9 at $1,322.33.

Gold gained 1.4 percent in the previous session in its biggest one-day percentage rise since mid-May.

U.S. gold futures for December delivery were up 0.6 percent to $1,322.80 per ounce.

South Korea and Japan said the missile North Korea launched early on Tuesday landed in Pacific waters east of Hokkaido after flying over the northern Japanese island, in a sharp escalation of tensions on the Korean peninsula.

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"North Korea's missiles over the Japanese Hokkaido islands obviously fueled buying for the flight for safety kind of money including the Japanese yen and gold," said Yuichi Ikemizu, Tokyo branch manager at ICBC Standard Bank.

The news saw equities plunging and the yen touching four-month highs against the dollar.

Geopolitical risks can boost demand for safe-haven assets such as gold which is considered a good store of value during volatility in other markets.

Spot gold is expected to rise to $1,337 per ounce, as it has cleared a resistance at $1,312, said Reuters technical analyst Wang Tao.