Gold prices rose to a one-week high on Friday as dollar weakened, while growing economic concerns put bullion on track for its best week since atleast late-March, reports Reuters.
A weaker greenback makes bullion attractive for overseas buyers, while gold is also considered a safe haven during times of political and economic uncertainty.
Spot gold was up 0.2 per cent at $1,846.09 per ounce by 1229 GMT, after climbing about 1.9 per cent in the last session. US gold futures rose 0.2 per cent to $1,844.20.
Recession fears have grown recently and because of the volatility in equity markets there will be more interest in gold, said Xiao Fu, head of commodities markets strategy at Bank of China International.
A stronger-than-expected US jobless claims data has also underlined the risks to economic growth, she added.
The US dollar was headed for its worst week since early February, with a global equities gauge set for its longest weekly losing streak on record amid investor worries about slowing growth and high inflation.
"The fact that the US dollar has been noticeably weaker since yesterday is lending tailwind (for gold)," Commerzbank analysts said in a note.
Gold has gained about 1.9 per cent so far this week, recovering from 3-1/2-month lows hit earlier in the week.
Data showed holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.7 per cent on Thursday, its first inflow since April 19.
"It remains to be seen whether this will turn out to be more than just a flash in the pan. Any lasting price recovery would require ETF investors to return," Commerzbank said.
Spot silver added 0.2 per cent to $21.93 per ounce, and was up about 3.8 per cent for the week.
Platinum rose 0.1 per cent to $963.56, while palladium eased 0.7 per cent to $1,993.28. Both were set for weekly gains.
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