Gold Ends Higher On Iraq Turmoil; Gains 3.3% For Week

(RTTNews) - Gold futures edged up to end higher for a third session in a row on Friday, following yesterday's surge of more than three percent, with the Federal Reserve's assurance to hold rates at a record low for an extended period and amid the ongoing escalating violence in Iraq.

Gold prices gained about 3.3 percent for the week.

Investors continued to keep a close watch on the developments in Iraq where militants are reportedly engaged in fierce fighting for the Beiji oil refinery and Tal Afar Airport. With no major U.S. economic data due for the day, investors are likely to track geopolitical news for direction.

Gold for August delivery, the most actively traded contract, gained $2.50 or 0.2 percent to close at $1,316.60 an ounce on the Comex division of the New York Mercantile Exchange on Friday.

Gold for August delivery scaled an intraday high of $1,322.50 and a low of $1,307.10 an ounce.

On Thursday, gold futures ended surged over 3.3 percent to end at a two-month high on the safe haven appeal of the precious metal with the ongoing conflict in Iraq and Fed's move to hold rates near zero for an extended period of time.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 782.62 tons on Friday from its previous close.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.41 on Friday, up from its previous close of 80.32 late Thursday in North American trade. The dollar scaled a high of 80.49 intraday and a low of 80.20.

The euro traded lower against the dollar at $1.3587 on Friday, as compared to its previous close of $1.3607 late Thursday in North American trade. The euro scaled a high of $1.3633 intraday and a low of $1.3566.

In economic news, the U.K. budget deficit widened more-than-expected in May as income receipts remained weak, signs the robust economic recovery failed to support public finance. Excluding the temporary effects of financial interventions, public sector net borrowing increased to GBP 13.3 billion from GBP 12.6 billion last year, the Office for National Statistics said Friday. The deficit was forecast to fall to GBP 8.7 billion.

Germany's leading index rose slightly in April, after holding steady in the previous month, a survey by the Conference Board showed Friday. The Conference Board leading economic index rose 0.2 percent monthly in April. The March outcome was revised to flat from the originally reported 0.3 percent rise.