2017.04.2423:48:00UTC+00Gold Steady after French Vote, Buoyed by North Korea Tension

Gold prices were steady following a sharp drop in the previous session on a market-friendly French presidential vote, as tensions in North Korea gave support for the safe-haven asset.

Spot gold was flat at $1,275 an ounce. Bullion prices dropped around 0.7 percent in the session earlier after scaling $1,265.90, the lowest since April 11. U.S. gold futures fell 0.1 percent at $1,276.60 per ounce.

Holdings of SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, climbed 0.17 percent to 860.17 tonnes on Monday. Russia and Kazakhstan increased gold holdings in March, according to the International Monetary Fund.

UBS trimmed its three-month target for gold prices to $1,200 an ounce for the previous estimate at $1,300. The launch of the London Metal Exchange's new precious metal contracts will be postponed until July 10, over a month later than initially announced, it said

Barrick Gold posted weaker-than-expected quarterly earnings and also cut its forecast for output and increased costs at its gold mine in Argentina, where cyanide solution spilled for the third time in 18 months. Newmont Mining Corp posted higher-than-expected adjusted earnings, buoyed by higher production and gold prices. It also raised its longer-term forecast for output and reduced costs due to expansions at a mine in Ghana.

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