Gold steadied at $1,079.00 (+0.06%) amid demand for safe-haven assets supported by tensions in the Middle East and the Korean peninsula.

North Korea said it had successfully tested a miniaturised hydrogen nuclear device on Wednesday morning. Japan called this event a threat to Japan's security.

Investors traditionally turn to gold at times of crisis and geopolitical tensions, but such gains are normally short-lived. Analysts noted that this time the precious metal hasn't gained much.

The dollar, bullion's traditional opponent, is likely to be strong on higher rates, which are expected to grow further this year.