Gold prices touched near three-month highs on Friday and were set to post a fourth straight weekly gain, as U.S. President Donald Trump's calls to lower interest rates and lack of clarity on tariffs weighed on the dollar.
Spot gold jumped 0.6% to $2,770.39 per ounce, as of 0820 GMT, and has gained more than 2% so far this week. Earlier in the day, prices rose to $2,777.10, their highest since Oct. 31, when they hit a record high of $2,790.15.
U.S. gold futures climbed 0.4% to $2,777.10.
The dollar is down more than 1% for the week, headed for its worst weekly fall in two months, making bullion less expensive for foreign buyers.
"The dollar slipped after Trump spoke against market expectations... This drop comes as he has refrained from implementing aggressive tariffs following his inauguration," Reliance Securities' senior analyst Jigar Trivedi said.
Trump called for an immediate drop in rates around the world during his speech at the World Economic Forum.
However, he did not provide clarity on tariffs which led market participants flocking to safe-haven assets such as gold to hedge against volatility.
Investors have sold the dollar in the wake of Trump's inauguration after his widely expected tariff announcements did not immediately materialise.
Elsewhere, the Bank of Japan raised interest rates to their highest since the 2008 global financial crisis.
"BoJ raised rates as expected, strengthening the Japanese Yen, in turn weakening the U.S. dollar which is positive for the yellow metal," Trivedi said.
Rate decisions from the U.S. Federal Reserve and European Central Bank are due next week. Traders see almost no chance of a Fed rate cut, according to the CME FedWatch Tool, which could dampen the appeal of non-yielding bullion.
"The trend for gold remains bullish and that means we are on track still to hit that milestone $3,000 level this year," said Kyle Rodda, financial market analyst, Capital.com.
Spot silver was up 1.2% at $30.82 per ounce, palladium gained 1.5% to $1,006.48 and platinum rose 1.1% to 952.70.
All of the three metals were poised for weekly gains. - Reuters
