Gold hit a 14-month high on Friday as intensifying political concerns in the Middle East pushed it above the $1,350 level.
Iran has dismissed blame from Washington for Thursday’s attacks on two oil tankers in the Gulf of Oman. Iran affirmed its responsibility for security in the Strait of Hormuz, through which almost a fifth of the world’s oil passes.
U.S. President Donald Trump blamed Iran on Friday for attacks on two oil tankers at the entrance to the Gulf despite Tehran’s denials. This stoked fears of a confrontation in the vital oil shipping route.
Tehran and Washington have both said they have no interest in starting a war. But this has done little to assuage concerns that the two arch foes could stumble into a conflict.
The impact of the U.S.-China trade war was also evident in the U.S. labour market.
Spot gold was up 1% to $1,355.00 per ounce at 1022 GMT. It hit a 14-month high on Friday at $1,358.04 earlier in the session. Prices have risen 1.1% so far this week, keeping the metal on track for its fourth consecutive weekly gain. U.S. gold futures jumped 1.1% to $1,357.9 an ounce.
Elsewhere, silver gained 1.1% to $15.06, its highest in a week. Platinum rose 1% to $815.85.
START TRADINGForex – 14-month high for gold on Middle East tensions
The dollar rose on Friday and was set for its biggest weekly gain in three weeks. Investors squared up for a U.S. central bank meeting next week. Policymakers might signal when it plans to cut interest rates for the first time in a decade. Against a basket of its rivals, the dollar rose 0.1% to a one-week high of 97.09.
The Australian dollar fell 0.24% to $0.6892 and was down 1.5% for the week, the biggest decline since mid-May. The New Zealand dollar dropped 0.4% to $0.6529, down 2% for the week. The dollars fell as bets on interest rate cuts undermined demand as a Group of 20 meeting later this month kept investors sidelined.
The euro was little changed at $1.1287.
Sterling fell again on Friday as investors trimmed their positions after Brexiteer Boris Johnson moved closer to becoming the next prime minister. Sterling is on track for its sixth week of losses versus the euro. The pound slipped 0.2% against the euro to 89.115 pence. On Tuesday sterling hit a five-month low of 89.325 pence per euro. Versus the dollar the pound slipped 0.4% to $1.2616.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money