* Spot gold down 0.5 pct for the week
* U.S. dollar hits 13-month high vs basket of major currencies
* Russian rouble marks 2-year low on news of fresh U.S. sanctions
* Turkish lira hits record low on diplomatic rift with U.S.
(Recasts, adds comments, updates prices)
By Apeksha Nair
BENGALURU, Aug 10 (Reuters) - Gold prices dipped in Asia on
Friday, languishing near a one- year low, weighed down by a rally in
the U.S. dollar amid heightened global political tensions.
Spot gold shed 0.5 percent to $1,206.29 an ounce at 0618 GMT,
hovering close to its one-year low of $1,204 hit last week.
The metal was also on track to post a fifth weekly decline.
U.S. gold futures were 0.5 percent lower at $1,213.4 an ounce.
"The strong dollar is effecting the price of gold. Despite
heightened geopolitical tensions, gold bears are still in control of
the price and pushing the bulls out of their boundary," said
Naeem Aslam, chief market analyst at ThinkMarkets.com.
The U.S. dollar, in which gold is priced, on Friday extended gains
to hit a 13-month high against a basket of peers as European
currencies such as the pound and euro continued to lose traction.
Meanwhile, fresh U.S. sanctions against Moscow saw Russia's rouble
near a two-year low, while the Turkish lira plumbed a record low in
the wake of a diplomatic rift with the United States.
Gold prices, which can gain during times of uncertainty, have
largely failed to benefit from rising geopolitical tensions this year,
as investors have chosen the safety of the dollar over the precious metal.
Also adding pressure on gold were expectations for higher interest
rates in the United States, where the Federal Reserve is expected to
raise benchmark lending rates next month for the third time this year.
The U.S. economy is performing "very well" with
continued growth clearing the way for one or two more interest rate
hikes in 2018, Chicago Federal Reserve Bank President Charles Evans
said on Thursday in an interview in which he dismissed earlier worries
about weak inflation.
Higher U.S. rates tend to boost the dollar and Treasury yields,
adding pressure on greenback-denominated, non-yielding bullion.
"We expect gold prices to exhibit range-bound trading
conditions for today with heavy downside potential looming large for
the current term," Benjamin Lu, a commodities analyst at
Singapore-based broker Phillip Futures, said in a note.
Spot gold looks neutral in a range of $1,206-$1,220 per ounce, and
an escape could suggest a direction, Reuters technicals analyst Wang
In other metals, silver fell 0.6 percent to $15.32 an ounce.
Platinum was down 0.4 percent at $827.20, while palladium lost
nearly 1 percent at $899.10.
All three metals were headed for weekly losses.
(Reporting by Apeksha Nair in Bengaluru Editing by Joseph Radford and
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