PRECIOUS-Gold at 9-1/2-month peak after North Korea missile test

    * Gold market buoyed by safe-haven demand
    * Trump warns North Korea of potential U.S. response
    * Palladium at 16-1/2-year high, platinum at 6-mth top

 (Updates prices; adds comment, background, second byline, NEW
YORK dateline)
    By Marcy Nicholson and Eric Onstad
    NEW YORK/LONDON, Aug 29 (Reuters) - Gold jumped to its
highest since November on Tuesday, extending the prior day's
rally above $1,300 per ounce as investors bought bullion as
insurance against falling prices of other assets after North
Korea tested a ballistic missile over Japan. 
    U.S. President Donald Trump warned that all options are on
the table for the United States to respond to North Korea's new
show of force.             
    "Funds and traders are filling their boots with gold at the
moment and so far that's justified," said Ole Hansen, head of
commodity strategy at Saxo Bank in Copenhagen.
    "Stocks are coming off hard, the dollar has weakened and now
also against the yen, which has been the missing link, while
bond yields are also taking a beating."
    Geopolitical risks can boost demand for safe-haven assets
such as gold, which is considered a store of value during
volatility in other markets. 
    Spot gold        was up 0.4 percent at $1,314.52 an ounce by
1:54 p.m. EDT (1754 GMT), after touching $1,325.9399, its
highest since Nov. 9.
    U.S. gold futures         for December delivery settled up
0.3 percent at $1,318.90. 
    "Investors are seeking safe shore and are unlikely to bail
too quickly on the yellow metal now, though profit taking will
certainly test the downside," said Miguel Perez-Santalla, vice
president of Heraeus Metal Management in New York.
    Spot gold climbed by 1.4 percent on Monday, breaking through
key resistance at $1,300 an ounce after comments by the head of
the European Central Bank boosted the euro and pressured the
    Gold extended its rally on Tuesday as global equity prices
slipped, with the MSCI world index                 at a one-week
low as investors flocked to safe-haven assets.            
    Holdings of SPDR Gold Trust      , the world's largest
gold-backed exchange-traded fund, rose 1.1 percent to 814.36
tonnes on Monday.    
    Other precious metals benefited, with palladium        up
1.1 percent at $944, after rising to a 16-1/2-year high at
    Platinum        gained 1.3 percent to $1,000 after marking
its highest since March 2 at $1,006.30.
    The platinum premium over palladium was around $57, up
slightly from levels in July but down sharply from around $254
in February as the palladium market outperformed.
    "We still think that the two could trade at parity in the
coming months, particularly if platinum prices lose steam, but
this would likely be temporary rather than palladium trading at
a sustained premium," Standard Chartered said in a note.
    Spot silver        was up 0.2 percent at $17.45 after
touching $17.66, a 2-1/2-month high.

 (Additional reporting by Apeksha Nair and Arpan Varghese in
Bengaluru; Editing by Edmund Blair and Grant McCool)