Iraq Unrest, Soft US Data Push Gold Near 2-Week High

Gold traded near a two-week high, set for the first back-to-back weekly advance since April, benefiting from the growing turmoil in Iraq that’s kept pressure on equities while concerns that a U.S. recovery may be stalling boosted demand for a haven.

Gold for immediate delivery rose 0.11 percent or 1.40 points to trade at $ 1,274.35 after opening at $1,272.84 while hitting its highest at $1,276.93 and lowest at $1,270.73.

Gold advanced as equity markets declined, boosting the appeal of the precious metal and on stronger safe-haven demand as tension in Iraq and some weak economic data combined to sap investor confidence.

Spot Silver also traded higher by 0.93 percent, 0.08 points at $ 19.58 after starting the day at $19.52. Silver hit an intraday high at $19.63 and low at $19.50.

Iraq Crisis

The government of Iraq has asked the United States for air assistance in quelling the uprising by al-Qaeda affiliated militants following a wave of violence that has seen in Iraq’s two major cities, Mosul and Tikrit, fall to insurgent forces.

Insurgents from the Islamic State of Iraq and Syria (ISIS) rapidly pressed towards Baghdad on Wednesday.

In response, President Barack Obama on Thursday threatened U.S. military strikes in Iraq against Sunni Islamist militants who want to establish their own state in Iraq and Syria.

Weak U.S. Data Weigh on Dollar

The dollar slipped for a second straight session against a basket of currencies on Thursday after U.S. retail sales and weekly jobless claims data showed weakness in the economy, failing to boost speculation of a hawkish stance from the Federal Reserve.

The latest labour department data on unemployment claims was worse than expected. U.S. retail sales rose just 0.3 percent in May, sharply below expectations, raising expectations the Federal Reserve will maintain its near-zero interest rate policy.

The Fed's upcoming monetary policy meeting is next week.

Dollar traded sharply lower for a third straight day, the USDIX was last seen at 80.46 after hitting a high of $80.59.

Palladium, Platinum Bounce after Sell-Off

Palladium and Platinum rose on Friday, after falling sharply in the previous session. Palladium was on track for its first weekly fall in five on expectations the longest strike in the history of South Africa's mines would end soon.

- Spot Platinum added 0.78%, 11.25 points to $ 1,451.75

- Spot Palladium gained 0.93%, 7.60 to $ 826.60