PRECIOUS-Gold up on rising U.S.-North Korea tensions

    * N.Korea says considering missile strike on Guam
    * Dollar/yen hits lowest level since mid-June
    * Platinum hovers near 3-1/2-month high

 (Updates prices)
    By Nithin ThomasPrasad
    BENGALURU, Aug 9 (Reuters) - Gold prices rose early
Wednesday amid rising tensions between the United States and
North Korea after the North responded to warnings from U.S.
President Donald Trump with a threat to strike the U.S.
territory of Guam.   
    "We've had some competing forces play out over the past 12
hours - the U.S. dollar was stronger off economic data, but that
was quickly reversed with President Trump's comments about North
Korea earlier today (Wednesday)," said ANZ analyst Daniel Hynes.
    Spot gold        rose 0.4 percent to $1,265.70 per ounce at
0646 GMT, while U.S. gold futures         for December delivery
rose 0.7 percent to $1,271.30 per ounce.
    Pyongyang said on Wednesday it was considering plans for a
missile strike on the U.S. Pacific territory of Guam, just hours
after Trump said North Korea would face "fire and fury" if it
threatens the United States, his strongest warning yet for
    "I think (the North Korea situation) is going to continue to
provide a little bit of support, but not enough to push prices
significantly higher from here," said Hynes.
     Asian shares and U.S. stock futures slipped while U.S.
Treasuries, gold and the safe-haven yen rose in early Asian
trading on Wednesday after tensions on the Korean peninsula
    On Tuesday, stronger-than-expected U.S. jobs data from the
Labor Department weighed on gold, dragging prices to the lowest
since July 26 at $1,251.01 an ounce.                           
    "The weakness in gold abruptly ended later in the day as
stocks turned south after President Trump issued a rather stern
warning to the North Koreans," said INTL FCStone analyst, Edward
    Geopolitical risks can boost demand for safe haven assets
such as gold.
    "We likely will continue to see more tension in the region
(Korean Peninsula)," Meir noted. 
    "This in turn suggests that at least for the balance of this
week, we likely should be long gold as the heated rhetoric could
raise the odds of military action."
    Investors are also awaiting U.S. inflation data due later
this week for clues on when the U.S. Federal Reserve would begin
reducing its $4.2 trillion bond portfolio. 
   In other precious metals, silver        rose 0.6 percent to
$16.52 per ounce.
    Platinum        gained 0.5 percent to $972.00 per ounce
after hitting its highest since April 21 in the previous
    Palladium        fell 0.2 percent to $895.60 per ounce.

 (Reporting by Nithin Prasad in Bengaluru; Editing by Richard
Pullin and Amrutha Gayathri)