Gold prices rose to a two-month high, gaining for a fourth consecutive day as investors sought safe haven amid rising tensions between North Korea and the United States. The yellow metal also received support from weak US inflation data.
US President Donald Trump issued a new warning to North Korea on Friday when he pointed out that US weapons were “ready” while Pyongyang accused him of pushing the Korean Peninsula into nuclear war.
Spot gold rose 0.2 percent to $ 1,287.91 an ounce, and the metal is heading for the biggest weekly gain since mid-April. Earlier in the session, gold hit its highest level since June 7 at $ 1291.86 an ounce.
Gold was up 0.3 percent at $ 1294 an ounce.
The geopolitical risk has enhanced the demand for assets that are considered safe investments such as gold.
Data showed that consumer prices in the United States increased at a slower pace than expected in July, which also provided support for the yellow metal.
Among other precious metals, silver rose 0.2 percent to $ 17.10 an ounce after hitting its highest since June 14 at $ 17.24 an ounce in the previous session. The metal is heading for weekly gains of 5.3 percent, the largest since July 2016.
Platinum rose 1 percent to $ 986.20 an ounce after hitting its highest since March 6 at $ 991.50 an ounce. The metal has gained nearly 2.8 percent since the start of the week.