Prices for gold recovered from a four-week low on Friday as investors sought a safe haven from geopolitical uncertainty caused by rising tensions between North Korea and the United States.
Bullion is often used as a refuge in times of political or economic turbulence while assets considered risky such as stocks are dumped.
North Korea said on Friday it might test a hydrogen bomb in the Pacific Ocean after U.S. President Donald Trump vowed to destroy the country, with leader Kim Jong Un promising to make a "mentally deranged" Trump pay dearly for his threats.
Earlier this week, the U.S. Federal Reserve signaled that it was still on track to raise interest rates by the end of the year, which put a damper on gold as tighter monetary policy could raise the opportunity cost of holding non-yielding bullion.
Spot gold was up 0.3% at $1,294.61 U.S. an ounce having hit a four-week low of $1,287.61 in the previous session. Bullion was down 1.7% for the week and was headed for a second weekly decline.
U.S. gold futures Friday climbed 0.3% to $1,298.60 U.S. an ounce.
Elsewhere, prices for silver climbed 0.1% to $16.97 U.S. an ounce, while platinum was down 0.2% to $933.35 U.S. Both metals were, however, set for a second weekly decline.
Palladium slipped 0.4% to $907.00 U.S. an ounce and was set for a third straight weekly loss.
