Gold recovered from a four-week low on Friday as investors sought a safe haven from geopolitical uncertainty caused by rising tensions between North Korea and the United States.
Bullion is often used as a refuge in times of political or economic turbulence while assets considered risky, such as stocks, are dumped.
North Korea said on Friday it might test a hydrogen bomb in the Pacific Ocean after U.S. President Donald Trump vowed to destroy the country, with leader Kim Jong Un promising to make a "mentally deranged" Trump pay dearly for his threats.
"Gold took quite a beating after the U.S. Federal Reserve meeting but now the market got the news about North Korea and now investors are moving back in gold," Danske Bank analyst Jens Pedersen said.
Earlier this week the U.S. Fed signaled that it was still on track to raise interest rates by the end of the year. This weighed on gold as tighter monetary policy raises the opportunity cost of holding non-yielding bullion.
Spot gold was up 0.48 percent at $1,297.1801 an ounce having hit a four-week low of $1,287.61 in the previous session. Bullion was down 1.7 percent for the week and was headed for a second weekly decline.
U.S. gold futures climbed 0.42 percent to $1,300.20 an ounce.