Sentiment on the yellow metal was boosted by the start of missile-tracking drills on Monday by the US, Japan and South Korea amid heightened geopolitical tensions in the Korean peninsula.
Gold prices rose from a four-month low on Monday as the dollar eased despite expectations of a Federal Reserve (Fed) rate hike on Wednesday.
The dollar appeared to be subject to some profit taking early on Monday following gains last week, with the dollar index easing 0.08%.
Gold was up 0.32% as at 0814 GMT, trading at just over $1,249 per ounce.
However, further gains for gold are likely to be tempered by expectations that the Fed will raise interest rates later this week, in what will be its third rate hike of 2017.
Higher US rates tend to boost the dollar and dampen appetite for gold.
US employment data on Friday suggested the US economy was still growing at a brisk pace, with non-farm payrolls exceeding expectations.