LONDON: Gold surged past the $1,600 level for the first time in nearly seven years earlier on Wednesday after Iran carried out retaliatory attacks against US forces in Iraq, but the metal pared gains as investors awaited reaction from the White House.

Spot gold rose 0.4 per cent to $1,579.33 per ounce at 1246 GMT, having earlier risen as much as 2.4pc to its highest since March 2013 to $1,610.90. US gold futures rose 0.4pc to $1,580.70 per ounce.

Elsewhere, palladium rose 2.2pc to $2,097.24 per ounce, after hitting another all-time peak of $2,101 an ounce on a sustained supply deficit.-Reuters