Gold rose in early New York futures trade early on Friday, as cheaper bullion prices and a soft dollar motivated buying by consumers and bullish investors looking for an eventual test of $500 an ounce.
December delivery gold at 10:12 am EDT (1412 GMT) was up $1.70 at $464.70 an ounce on the New York Mercantile Exchange's COMEX division, trading from $462.70 to $465.60.
The contract on Thursday hit its lowest price since September 27 at $462, eight days after reaching its costliest in 18-years at $480.25 an ounce.
"We're a good $15 or $16 off from the highs and physical demand is pretty good down here," said a trader at a metals refining company. "I think we are going to see pretty decent support from here down to $457, which was big resistance and a previous high."
With open interest and the net long position held by large traders at record highs, gold looked technically overbought on the COMEX, leading some funds and speculators to take profits.
Gold was last above $500 an ounce in December 1987.
Bullion consumers in India, the world's largest market for gold, are getting used to paying high prices. Buying by physical dealers usually picks up at this time of year ahead of India's festival and wedding season.
The dollar slipped to $1.2031/33 per euro in the morning from $1.2016/20 at Thursday's close, making gold a bit more affordable to European investors.
Spot gold was quoted at $462.60/3.30 an ounce, up from $460.90/461.60 at Thursday's New York close. Friday's afternoon fix in London by bullion dealers was at $462.85.
December silver was unchanged at $7.655 an ounce, trading from $7.60 $7.67. Spot silver was flat at $7.60/63, as was the fix was at $7.60.
NYMEX January platinum was up $7.90 at $933 an ounce. Spot rose to $927/931 from $921/925.
December palladium was off $1.05 at $211 an ounce. Spot was at $207/210, hardly moved from $206/210.