Bullion rebounded on Friday as the euro lost strength despite better-than-forecast debt auctions by Spain and Italy, while purchases from jewellers and investors, which sent premiums for gold bars to two-year highs, offered additional support.
Silver also bounced after falling more than 3 percent in the previous session, while platinum and palladium held near their multi-year highs on the prospect of more demand from investors and the industrial sector. Spot gold rose $2.25 to $1,375.00 an ounce by 0701 GMT after trading in a choppy $23 range on Thursday. Bullion struck a lifetime high around $1,430 an ounce in December on fears the euro debt crisis would spread.