LONDON: Gold edged up on but not far off a five-week low, and was headed for a second straight week of losses, as a strong dollar after robust economic data offset a fall in equities due to rising political tensions.

Spot gold was up 0.2 percent at 1,294.36 an ounce by 1409 GMT, after losing nearly 1 percent on Thursday, when it hit its lowest since June 19 at $1,287.46.

US gold futures were up $4.00 to $1,294.80 an ounce.

The dollar was up 0.1 percent against a basket of currencies, gaining support from a bigger-than-expected increase in US durable orders in June.

Gold has lost 1.3 percent of its value so far this week, following a two percent fall in the previous week, mostly on speculation that an improving employment sector in the US could signal an early rate increase by the Federal Reserve.

Higher interest rates would encourage investors to switch to assets that, unlike gold, pay interest.

Gold had managed to stay above $1,300 an ounce for most of this week as violence continued in Gaza, and tensions between the West and Russia over Ukraine remained high.