Gold ends lower, but manages 1st weekly gain in 4

Reuters with CNBC
Getty Images

Gold rejected a 3-1/2 week high on Friday, settling lower fort the session, but in managed to log a weekly gain of more than 1 percent for the week as the dollar fell and equities rallied after reports of reduced tensions in the Russian-Ukraine situation.

Earlier, President Barack Obama said he had authorized targeted strikes to protect the besieged Yazidi minority and U.S. personnel in Iraq, after the Iraqi government requested help.

Chart: Precious Metals

U.S. gold futures for December delivery lost $1.60 to settle at $1,309 an ounce, but it gained 1.2 percent for the week, its first increase in four weeks.

Spot gold hit its highest since July 14 at $1,322.60 an ounce earlier, but reversed as Wall Street indexes turned higher. It was last down 0.2 percent at $1,310 an ounce after news broke that U.S. military hard launched another round of airstrikes against an Islamic State target in Iraq, according to American officials.

The dollar was down 0.2 percent against a basket of currencies as U.S. bond yields edged up from 14-week lows.

A weaker U.S. currency makes dollar-denominated assets such as gold cheaper for other currency holders, while returns on bond yields are closely watched by the gold market, given that the metal pays no interest.

—By Reuters with CNBC