US gold futures rallied to a three-week high on Friday, gaining 1 percent as recent signs of economic recovery boosted the metal as a hedge against rising inflation in the longer term. December gold settled up $11.50, or 1.2 percent, at $958.80 an ounce on the COMEX division of the New York Mercantile Exchange.
GOLD: Ranging from $949.50 to $964.60 - the highest level since August 7. Bullion investors bought December futures ahead of a three-day weekend in the United Kingdom, prompted by a lower dollar versus the euro and higher global equities markets - traders.
Precious metals rallied, playing catch-up to the dollar's weakness from Thursday afternoon and bullish technical signals, and support was established at $947 an ounce for spot bullion - Miguel Perez-Santalla, vice president of sales at Heraeus Precious Metals Management.
The dollar, however, turned higher against the euro, as a drop of US consumer confidence triggered safe-haven buying into the greenback, pressuring the metal. Gold-backed exchange-traded funds rose to their highest level on Thursday, and selling of physical gold has slowed down - Perez-Santalla.
Holdings of Julius Baer's gold-backed exchange-traded fund rose 43,600 ounces, or 2 percent, in the week to August 26. COMEX estimated 1 pm volume at 75,977 lots. US crude futures rose about 50 cents to over $73 per barrel. Investors view crude oil as a barometer of economic growth.
Gold-oil ratio at 13.10, down slightly from the previous session's 13.12. Spot gold at $956.40 an ounce at 2:06 pm EDT (1806 GMT), against $946.75 in late Thursday dealings in New York. London afternoon gold fix at $955.50 an ounce.
SILVER: December silver ended up 56.4 cents, or 4 percent, at $14.815 an ounce in heavy trade on the back of sharply higher copper and other base metals. Silver futures had recently outperformed gold, helped by better economic sentiment.
Usually less-liquid silver has the characteristics of both precious and industrial metals. Ranged from $14.225 to $14.900 an ounce - a two-week high. COMEX estimated 1 pm volume at 44,807 lots. Spot silver at $14.77 an ounce, versus its previous close of $14.24. London silver fixed at $14.540 an ounce.
PLATINUM: October platinum finished up $5.40 at $1,245.90 an ounce on economic optimism and supply worries amid news of strikes in top-producing country South Africa. A strike at Impala Platinum widened on Friday and workers at Anglo Platinum rejected a pay offer, fuelling fears of a sector-wide work stoppage in South Africa, the world's top producer of the precious metal. Spot platinum at $1,241 an ounce against $1,240.50.
PALLADIUM: December palladium closed up $5.60, or 2 percent, at $292.35 an ounce, tracking platinum's gains. Spot palladium at $285.50 an ounce, against its previous finish of $284.
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