The gold price rose to a two week high of $1,265.70 per ounce as U.S. economic data disappointed markets and violence broke out in northern Iraq.

The gold price was bolstered after that the release of disappointing retail sales data and conformation from the Labour Department the number of people applying for initial jobless benefits increased by over 4,000. The data undermines the consensus that the world’s largest economy is recovering from the 2008 economic crises.

In Iraq, militants linked to al-Qaeda took control over the northern cities of Mosul and Tikrit boosting gold’s appeal as the ultimate safe haven and driving the price of crude oil to a 12 month high.

Silver for July delivery rose 0.42% to $19.25.

The pound rose against the dollar and euro after the governor of the Bank of England, Mark Carney signalled interest rates may have to increase later this year.