Gold prices rose to a seven-week high on Friday, bolstered by a soft dollar, expectations of interest rate cuts and safe-haven demand prompted by geopolitical turbulence, while silver hit a record high, reports Reuters.
Spot gold rose 0.7 per cent to $4,311.73 per ounce by 0945 GMT, its highest level since October 21, and set for a 2.7 per cent weekly gain.
US gold futures gained 0.7 per cent to $4,343.50.
The dollar hovered near a two-month low, and was on track for a third straight weekly drop, making bullion more affordable for overseas buyers.
Additionally, "the sharp rise in US weekly jobless claims as well as US-Venezuela tensions are underpinning gold and keeping haven demand strong," said Zain Vawda, analyst at MarketPulse by OANDA.
US jobless claims rose by the most in nearly 4-1/2 years last week, reversing the sharp drop seen in the previous week.
The US Federal Reserve trimmed rates by 25 basis points for the third time this year on Wednesday, but indicated caution on additional cuts.
Investors are currently pricing in two rate cuts next year, and next week's US non-farm payrolls report could provide further clues on the Fed's future policy path.
Non-yielding assets such as gold tend to benefit in low-interest-rate environment.
On the geopolitical front, the US is preparing to intercept more ships transporting Venezuelan oil following the seizure of a tanker this week.
Meanwhile, India saw widening gold discounts this week as demand remained subdued despite the wedding season, while high spot prices also dented demand in China.
Spot silver rose 0.5 per cent to $63.87 per ounce, after hitting a new record high of $64.32/oz, and is headed for a 9.5 per cent weekly gain.
Prices have more than doubled this year, supported by strong industrial demand, dwindling inventories and its inclusion on the US critical minerals list.
"Silver is supported by industrial demand amid fears of shortages, a continued tight market, and the speculative frenzy, mostly from retail investors which has helped drive inflows to Silver ETFs," said Ole Hansen, head of commodity strategy at Saxo Bank. Elsewhere, platinum was up 0.8 per cent at $1,708.11, while palladium climbed 2.2 per cent to $1,516.95. Both were headed for a weekly rise.
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