Gold climbed to $1,079.00 (+0.48%) amid escalating geopolitical tensions after Turkey downed a Russian warplane on a Syrian border. However bullion's gains are limited by expectations for an imminent interest rate hike in the U.S. Higher rates would harm demand for the non-interest-bearing precious metal.

The North Atlantic Treaty Organization and the U.S. supported Turkey's position saying that it had a right to defend its sovereignty.

This tension boosted gold's safe-haven appeal, however it may be short-lived. "While we think gold may be supported, we are not anticipating a robust rally, and look for only moderate gains, with a lot of upside resistance," HSBC analyst James Steel said.

Liquidity is likely to be thin ahead of Thanksgiving Day on Thursday.