Gold futures in New York rocketed up more than 4 percent early on Friday in a holiday shortened session, as a weaker dollar made the precious metal more attractive to investors. Window dressing at month-end and quarter-end and before a US market holiday on Monday and Tuesday also stoked the rally, dealers said.
The metal opened above $600 for the first time since mid-month, and it got another leg up after stop-loss buying accelerated the advance by midmorning.
"There's been some pretty good short-covering," said George Gero, vice president at RBC Capital Markets Global Futures.
Gold for August delivery at the COMEX division of the New York Mercantile Exchange bolted up $25.10 to $614 an ounce by 9:29 am EDT (1329 GMT), after peaking at $614.50 to mark its highest since June 12. New York trading was to shut early, around noon, and the market will remain shut until Wednesday for the US Independence Day holiday on July 4.
The euro hit a three-week high against the dollar as investors focused on prospects for faster eurozone rate hikes after the US Federal Reserve signalled a pause in its long monetary tightening campaign.
The Federal Open Market Committee on Thursday raised a key rate by a quarter-point to 5.25 percent, as widely expected in the market. The Fed also said there were some recent signs that economic growth was moderating, partly because of the gradual cooling of housing markets and higher interest rates. Estimated volume was 10,000 contracts at 9 am.
Spot gold jumped to $610.30/611.00, from $592.00/594.00 at Thursday's New York close. Friday's morning bullion fix in London hit $600.40. COMEX September silver soared 59.0 cents, or 5.7 percent, to $11.01 an ounce, dealing from $10.40 to $11.04. Spot silver fetched $10.99/11.09, up from $10.50/60. Friday's fix rose to $10.70.
NYMEX October platinum was up $38.30, or 3.2 percent, at $1,239 an ounce. Spot traded at $1,223/1,233 September palladium gained $5.20 to $318.60 an ounce. Spot changed hands at $313/319.