LONDON: Gold rose on Friday, rebounding from the previous session’s drop to a one-month low, as heightened tensions between Russia and the West over Ukraine prompted speculators to buy back their bearish bets ahead of the weekend.

For the week, however, bullion is still set for a one-per cent drop, its second consecutive decline, as encouraging recent US economic indicators lessened the metal’s safe-haven appeal.

Gold prices climbed as Russia said on Friday the United States was trying to influence international opinion through unfounded insinuations and anti-Russian rhetoric over the crisis in Ukraine, while the Pentagon said the transfer of rocket systems from Russia to Ukrainian separatists appeared to be imminent.

Spot gold was up 0.4pc at 1,297.62 an ounce by 12:33 p.m. EDT (1633 GMT), after losing nearly 1pc on Thursday, when it hit its lowest since June 19 at $1,287.46. US COMEX gold futures for August delivery were up $7.20 to $1,298 an ounce.

Weaker US equities dragged by bellwether online retailer Amazon also lifted gold prices.

The market awaited the release of July US non-farm payrolls and the Federal Open Market Committee meeting, both scheduled for next week.

Published in Dawn, July 26th, 2014