Gold is boosted as US authorises air strikes in Iraq
By A. Ananthalakshmi
The 10-year U.S. Treasury yield hit a 14-month low and the dollar slipped against the safe-haven yen, showing increasing risk-aversion in financial markets.
Spot gold hit $1,318.60 an ounce, its highest since July 18, and at 0532 GMT was up 0.1 percent on the day at $1,315.
The metal has gained 1.7 percent this week, its first increase in four weeks and the best week in seven. U.S. gold was up about $4 at $1,316.80.
Meanwhile, in the physical markets, buying interest slowed with the price gains. Prices in top buyer China were on a par with the global benchmark, whereas earlier in the week gold commanded premiums of about $2 or $3 there.
Persistent weakness in physical demand would make it hard for gold to sustain any price rally.
(Reporting by A. Ananthalakshmi; Editing by Edwina Gibbs, Alan Raybould and Biju Dwarakanath)