Gold prices rose on Friday to hover near $1,400 per ounce amid rising geopolitical tensions in the Middle East and on hopes for policy easing by global central banks.
Spot gold rose 0.7 percent to $1,398.17 after soaring past the $1,400 level for the first time since September 2013 earlier in the day. U.S. gold futures were up 0.4 percent at $1,401.65 per ounce.
Geopolitical tensions remained in focus after the New York Times reported that U.S. President Donald Trump had approved targeted military strikes against Iran in retaliation for shooting down a U.S. drone, and then backed out.
Iran seems not keen on peace talks. Reuters reported, citing Iranian officials that Trump had passed a message to Tehran via Oman warning that an attack on Iran was imminent.
"He gave a short period of time to get our response but Iran's immediate response was that it is up to Supreme Leader [Ayatollah Ali] Khamenei to decide about this issue," an anonymous Iranian official told the news agency.
The risk of conflict between Washington and Tehran has been rising as U.S. sanctions on Iran have severely reduced oil exports from OPEC's third largest producer.
The U.S. dollar is heading for a big weekly loss, touching a five-month low against the Japanese yen as markets priced in a rate cut at the Fed's July meeting.
The yield on the benchmark 10-year Treasury note drifted below 2 percent for the first time since November 2016 in the wake of dovish shift in Fed and ECB policy.