Gold hit a 14-month high on Friday as intensifying political concerns in the Middle East pushed it above the $1,350 level.

Suspected attacks on two tankers off the coast of Iran saw oil markets erupt out of their recent slump on Thursday. Traders retreated to ultra-safe government bonds, gold and the Japanese yen.

The dollar fell as rising US-China trade tensions and growing bets on a U.S. interest rate cut sapped investor demand.

Sterling recovered from five-month low versus the common currency after April pay data. The British currency has been on the backfoot in recent weeks as investors sit on the sidelines.

Mexico trade talks drove investors towards safe-haven currencies. Mexican and U.S. officials resume talks in Washington aimed at averting an imposition of tariffs on Mexican goods.