Gold prices rose Friday as tensions in Ukraine and the Middle East trumped investor worries about a potential rise in US interest rates.
Gold for December delivery, the most actively traded contract, closed up $US4.80, or 0.4 per cent, at $US1,280.20 a troy ounce on the Comex division of the New York Mercantile Exchange.
For the week, the contract lost two per cent.
US and Western military leaders condemned Russia for sending a convoy of trucks believed to be carrying humanitarian aid into eastern Ukraine without Kiev's permission, calling it a violation of Ukraine's sovereignty that could spark an international response.
In the Middle East, US officials have called for more airstrikes against Islamic militants in Iraq, while Hamas killed 18 people accused of collaborating with Israeli forces, after three of its senior leaders died in targeted attacks by Israel Thursday.
Some investors buy gold in times of geopolitical or economic uncertainty, believing it will hold its value better than other assets. But with the US recovery gaining strength and the Federal Reserve seen as debating a sooner-than-expected increase in interest rates, some investors believe prices for the precious metal are headed lower.
At a Friday meeting of central bankers in Jackson Hole, Wyoming, Federal Reserve chair Janet Yellen reiterated comments made in July, saying the Fed could raise rates sooner than expected if the job market continues to improve or consumer prices rise toward the central bank's 2 per cent goal, but will keep rates low if progress stalls.
Silver prices fell 2.9 cents, or 0.2 per cent, to $US19.386 a troy ounce. It was the lowest settlement for the most actively traded silver contract since June 11. Prices are down almost 10 per cent from their July 10 peak of $US21.508 an ounce.
Platinum for October delivery eased 80 cents, or 0.1 per cent, to $US1,418.50 a troy ounce, the lowest settlement since April 24.
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