* Gold at near six-year highs after big week
* Potential military strikes in Middle East worry markets
* Investors digest possible wave of central bank easing
* Government yields edge up; dollar index falls
By Lewis Krauskopf
NEW YORK, June 21 (Reuters) - Oil prices built on recent gains on Friday on fears any U.S. military attack on Iran would disrupt flows from the Middle East, while increases on Wall Street kept a gauge of global stock markets near seven-week highs.
Gold prices climbed to near six-year highs and were on track for their best week in three years.
Central banks have dominated economic news this week, with the Federal Reserve signaling the potential for a U.S. interest rate cut later this year and the European Central Bank hinting at stimulus measures. gauge of stocks across the globe .MIWD00000PUS gained 0.02%, as Wall Street's main indexes climbed in morning trading a day after the benchmark S&P 500 notched a record high.
U.S. stocks picked up steam after a Wall Street Journal report said U.S. Vice President Mike Pence will postpone his planned speech on China policy next week to avoid stoking additional tensions ahead of President Donald Trump's planned meeting with Chinese President Xi Jinping next week. about a trade war between the two countries undermining the global economy have clouded the outlook for markets.
On Wall Street, the Dow Jones Industrial Average .DJI rose 120.37 points, or 0.45%, to 26,873.54, the S&P 500 .SPX gained 6.78 points, or 0.23%, to 2,960.96 and the Nasdaq Composite .IXIC added 10.94 points, or 0.14%, to 8,062.28.
The pan-European STOXX 600 index .STOXX lost 0.33%.
Trump said he had aborted a military strike on Iran because such a response to Tehran's downing of an unmanned U.S. surveillance drone would have caused a disproportionate loss of life. gold XAU= added 0.5% to $1,394.31 an ounce, surpassing the key $1,400 level during the session. is a perfect mix of ingredients for gold's rush to the top – a weak macroeconomic environment, low bond yields, soft dollar and rising geopolitical tensions," said Howie Lee, an economist at OCBC Bank.
Oil futures rallied on fears of a disruption to flows in the Middle East, which provides more than a fifth of the world's oil output.
"A lot of the oil produced in the world comes from very troubled areas, and occasionally we get reminders of that," said Gene McGillian, vice president at Tradition Energy in Stamford, Connecticut.
U.S. crude CLcv1 rose 0.67% to $57.45 per barrel and Brent LCOcv1 was last at $65.09, up 0.99% on the day. bond yields in the United States and Europe edged higher but remained near record or multi-year lows after the dovish statements from the central banks. 10-year U.S. Treasury notes US10YT=RR last fell 18/32 in price to yield 2.0609%, from 2.001% late on Thursday.
The dollar index .DXY , which measures the greenback against a basket of currencies, fell 0.1%, with the euro EUR= up 0.27% to $1.1321.
The yen rose to a five-month high versus the dollar JPY= during the session on growing tensions between Iran and the United States. Graphic: World FX rates in 2019
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