Gold firmed on the last trading day of the year, gearing towards its strongest annual gain in three years, supported by a languishing dollar and a firm outlook for precious metals into 2011. The precious metals complex has had a stellar run this year, led by palladium's 95 percent rise, in a broad commodities rally which has pushed up the 19-commodity Reuters-Jefferies CRB index up 15 percent.
Spot gold gained 0.4 percent to $1,409.20 an ounce by 0715 GMT, on course for a 29 percent annual gain and a fifth straight month of gains. US gold climbed up 0.3 percent to $1,410.2 an ounce. Spot palladium gained 0.3 percent to $788.68 an ounce, after rising to a nine-year high of $795.47 on Thursday. Spot silver was the second best performer in precious metals, up 82 percent on the year. It was trading at $30.70, retreating from a 30-year peak of $30.88 hit in the previous session.