US gold futures hit a fresh one-week high early on Friday, reversing earlier losses, as jitters over economic factors and a threat of attacks in New York subways prompted speculator buying, trade sources said.
Silver surged to a seven-month high for futures on scattered fund buying, as the precious and industrial metal drew strength from a sharp rally in the copper market.
By 10:25 am EDT, benchmark December delivery gold climbed $1.10 at $476.10 an ounce on the New York Mercantile Exchange's COMEX division, trading at its highest since September 30, in a range of $472.50 to $477.
Gold eased at first on a smaller-than-expected loss of US jobs in September, but it later drew an influx of buying as New York stepped up security on its subways following a warning they were under threat of an attack.
"Gold's jittery. There may be a little flight-to-quality buying in the market," said James Quinn, commodities commentator at AG Edwards & Sons. "And I think the strength in the silver and copper markets is holding the gold market steady.
Many in the market feel gold can hit $500 in the near-term. December gold hit an almost 18-year peak at $479 on September 22.
Spot gold fetched $473.00/473.70 an ounce, up from Thursday's close in New York at $472.00/2.70. Bullion dealers fixed gold at $472.70 in London in the afternoon.
COMEX December silver hit its highest mark since early March. Futures stood 11.5 cents firmer at $7.71 an ounce, trading $7.58-7.74.
Spot silver reached $7.65/68, from $7.54/57 on Thursday. The fix was at $7.62.
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