Gold surges

Bengalur: |Gold edged up in early Asian trade on Friday, after dropping below its recent trading range to hit a more than four-month low overnight. Spot gold was up nearly 0.2 percent at $1,248.29 an ounce by 0102 GMT, after hitting its lowest since July 26 at $1,243.71 on Thursday. U.S. gold futures were 0.2 percent lower at $1,250.10. The dollar inched higher on Friday, on track for a weekly gain against a basket of currencies, as the passage of a bill to temporarily extend U.S. government funding raised investors´ optimism that a tax reform bill would also pass.

Two U.S. B-1B heavy bombers joined large-scale combat drills over South Korea on Thursday amid warnings from North Korea that the exercises and U.S. threats have made the outbreak of war "an established fact." The number of Americans filing for unemployment benefits unexpectedly fell last week, suggesting a rapid tightening of the labor market that bolsters expectations the Federal Reserve will raise interest rates next week.