Gold prices climbed to one-week highs early Friday morning, on the back of a lower U.S. dollar and economic and political uncertainty around the world, but the prospect of further interest rate rises in the United States limited gains.
Spot gold was up 0.5% at $1,256.89 U.S. an ounce after earlier touching $1,258.00 U.S., its highest since June 14. U.S. gold futures rose 0.7% to $1,258.00 U.S.
However, gold is little changed from last week.
Allegations of Russian interference in last fall's presidential election have cast a shadow over U.S. President Donald Trump's first five months in office. North Korea testing a rocket engine and Brexit negotiations also fueled concern about global stability.
Gold is often used by investors as a hedge against political and financial uncertainty. But it doesn't earn interest, dividends or coupons and it costs money to insure and store.
A rising U.S. currency makes dollar-denominated metals more expensive for holders of other currencies, which potentially could rein in demand.
Elsewhere, silver gained 1.2% to $16.72 U.S. an ounce, platinum climbed 0.8% to $928.75 U.S. an ounce and palladium rose 0.7% to $890.75 U.S.
