Could gold prices break through the $1,270s?

''Gold prices on Monday held around their highest in nearly seven weeks as tensions on the Korean peninsula boosted safe-haven demand for the metal and as the U.S. dollar hovered close to multi-month lows.

The United States flew two supersonic B-1B bombers over the Korean peninsula in a show of force on Sunday and the U.S. ambassador to the United Nations said China, Japan and South Korea needed to do more after Pyongyang's latest missile tests.

Spot gold hit its highest since June 14 at $1,270.98 in early trade, but was down 0.1 percent at $1,267.93 per ounce as of 0656 GMT. It gained about 1.1 percent last week in its third consecutive weekly gain. U.S. gold futures for August delivery fell 0.1 percent to $1,267.60 per ounce.

The dollar struggled on Monday, wallowing near a 2-1/2-year low against the euro, weighed down by U.S. political uncertainty and uninspiring U.S. data that added to doubts about whether there will be another Federal Reserve rate hike this year.''