Gold prices are heading for gains for the third week

Gold prices are heading for gains for the third week in a row on Friday, as conflict in the Middle East leads to investors increasingly seeking safe havens, despite US interest rates remaining high for a longer period.

By 0341 GMT, gold in spot transactions rose 0.1 percent to $1,986.76 per ounce, while US gold futures saw little change, settling at $1,996.80.

Gold rose about nine percent as investors resorted to it as a safe haven from the potential repercussions of the war between Israel and the Palestinians that escalated earlier this month.

But expectations of higher US interest rates kept gold prices below the $2,000 ceiling, which was last exceeded in May.

The dollar is heading for weekly gains on Friday, while US Treasury bond yields rose 0.2 percent after data showed that US economic growth rose at the fastest pace in nearly two years in the third quarter.

US Treasury Secretary Janet Yellen said that the growth of the US economy in the third quarter by approximately five percent is a good sign that the economy is heading towards a smooth decline, but it may contribute to keeping long-term Treasury bond yields high.

Investors are also focusing on US Personal Consumption Expenditures price index data due later on Friday for indications on what to expect from the Federal Reserve’s policy meeting next week.

As for other precious metals, silver settled in spot transactions at $22.84 per ounce. Platinum rose 0.5 percent to $904.71, while palladium increased 0.2 percent to $1,135.65.