Gold rose and was headed for a weekly gain on easing fears of inflation and higher interest rates, as investors remained optimistic about a US-Iran peace deal despite renewed hostilities, Reuters reports.
Spot gold was up 0.85 per cent at $4,709.06 per ounce, as of 0739 GMT. Bullion has gained 2pc so far this week.
US gold futures for June delivery rose 0.1pc to $4,716.50. The United States and Iran exchanged fire on Thursday in the most serious test yet of their month-long ceasefire, but Iran said the situation returned to normal while the US said it did not want to escalate.
