Gold Surges to Above $1200

Gold held on to gains from a seven-day rally on Friday and looked set to post its second straight weekly gain on expectations U.S. interest rates will stay low for longer and as escalating tensions in the Middle East boosted safe-haven bids.

Spot gold was little changed at $1,203.36 an ounce by 0038 GMT. The metal rose to a three-week high of $1,219.40 on Thursday on knee-jerk reaction to Saudi air strikes in Yemen, but pared gains to close near $1,200.

Warplanes from Saudi Arabia and Arab allies struck at the Houthis rebels and allied army units in Yemen, who have taken over much of the country and seek to oust Yemen’s President Abd-Rabbu Mansour Hadi.

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