US silver futures closed at a two-month peak on Friday while gold hit a nine-day high, fuelled by speculative fund buying due to a softer dollar late this week, dealers said. Silver for March delivery rose 24.5 cents, or 3.5 percent, to end at $7.21 an ounce on the New York Mercantile Exchange's COMEX division. It moved between $6.945 and $7.24 - its priciest since December 8.
The gray metal climbed 37.5 cents on Thursday as precious metals started rallying amid calculations that the US trade deficit would weigh on the dollar.
A weaker greenback makes dollar-priced metals like silver and gold more affordable for non-US buyers.
Spot silver was last at $7.16/19, way above Thursday's late New York quote at $6.93/96. Friday's London fix was at $6.98.
"With gold and the base metals looking steady for the moment and the dollar on a weaker footing, it seems silver could extend its gains in the coming sessions," said James Moore of TheBullionDesk.com.
Dealers put resistance in COMEX March silver at $7.24 and then at $7.35/40, with support at $7.15 and $7.05. In spot, the upside target was $7.25/40
Gold gained also, drawing support from its bounce from $412 support previously and from apparent US opposition to proposed sales of gold held by the International Monetary Fund to finance Third World debt relief, said analysts.
April gold climbed $3.30 to close at $422 an ounce, trading from $417.70 to $423.40 - its highest close since February 2.
Currencies mostly would dictate further direction in gold, dealers said, though geopolitical concerns also supported it.
"With the risk of further escalation in the tensions between Iran, North Korea and the US over the weekend, traders are unlikely to go home short," Moore said.
Chartists put resistance in April gold at $423 and then at $428, with support at $412-$415, and then $405 and $400.
Against the dollar, the euro fetched $1.2871 by midafternoon, not far from Thursday's late levels.
Spot gold hit $420.50/1.25, versus $417.25/8.00 previously. The London late fix was at $418.85.
Trade in gold has been thinned this week by the Lunar New Year and the Tokyo Commodity Exchange's closure on Friday for a national holiday.
April platinum rose $1.90 to $871.20 an ounce. Spot platinum changed hands at $868/872.
March palladium was up $2.70 at $184.95 an ounce. Spot hit $181/185.
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