· Gold rose to a 2-1/2-week high on Friday after U.S. President Donald Trump warned he might ultimately end a 2015 nuclear agreement with Iran and after weak U.S. inflation data undermined the case for interest rate rises.
· Spot gold rose for a sixth straight session on Friday, and was up 0.8 percent at $1,303.5 an ounce by 3:53 p.m. EDT (1953 GMT), after hitting $1,302.40, the highest since Sept. 26. It was set for a weekly gain of 2 percent.
· U.S. gold futures for December delivery settled up $8.10, or 0.6 percent, at $1,304.60 per ounce, also touching the highest level in more than two weeks.
· The price gains propelled gold through Fibonacci resistance and the 50-day moving average at around $1,298.
· "Once gold crossed past the $1,300 key psychological level, we saw aggressive buying," said Phillip Streible, senior commodities strategist at RJO Futures in Chicago.
· Underlying inflation in the United States remained muted in September despite a surge in gasoline prices after hurricanes disrupted production in the Gulf.
· Markets were pricing in an 82 percent chance of a December rate hike, down from 87 percent before the data were released, according to CME Group's FedWatch tool.
· Trump struck a blow against the Iran agreement on Friday, choosing not to certify that Tehran is complying with the deal and warning he might ultimately terminate it.
· A more confrontational stance on Iran would add to worries over North Korea and political chaos in Washington and increase demand for gold as a safe haven, Saxo Bank analyst Ole Hansen said.
· Silver was up 1.09 percent at $17.36 an ounce after hitting a three-week high of $17.39.
· Platinum was up 1.13 percent at $945.50 an ounce, hitting a three-week high of $946.10 and palladium was 1.8 percent higher at $990.50 after hitting a 5-1/2-week high of $996.90.
Reference: Reuters
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