Gold prices rise

Gold climbed to a three-week high on Friday after US President Barack Obama authorised air strikes in Iraq, and the metal looked set to post its best week in seven as global geopolitical tensions spurred safe-haven demand.

Bullion also got a boost from a drop in Asian share prices on growing fears that conflicts in Ukraine and the Middle East could sap global growth.

Obama said he had authorized limited US air strikes to blunt an onslaught by Islamic militants in northern Iraq and begun military air-drops of humanitarian supplies to besieged religious minorities to prevent a “potential act of genocide”.

The 10-year US Treasury yield hit a 14-month low and the dollar slipped against the safe-haven yen, showing increasing risk-aversion in financial markets.

Spot gold hit $1,318.60 an ounce, its highest since July 18, and at 0532 GMT was up 0.1 percent on the day at $1,315.