Gold rose 1 percent on Friday and was heading for its fifth weekly gain, supported by a weaker dollar and prospects for further monetary policy easing in the wake of Britain's vote to leave the European Union. Safe-haven demand for the metal spurred most of the gains as investors rushed to protect themselves against the uncertainty in the lead up to Britain's shock vote to exit the European Union, dubbed 'Brexit.'
Concerns over the trajectory of global growth, dovish comments from the US Federal Reserve Chair Janet Yellen and retail demand had supported gold ahead of last week's Brexit vote. Spot gold rose to a session high of $1,341.40 an ounce, and was 1.2 percent higher at $1,337.6 by 2:23 pm EDT (1808 GMT). The metal gained 8.8 percent in June, its biggest monthly rise since February. US gold futures for August delivery settled up 1.4 percent at $1,339. Gold's strength benefited silver, which breached the $19 an ounce level for the first time since September 2014. It rose as much as 5 percent to $19.64 and traded 4.9 percent higher at $19.61. Silver was on track for its best week since August 2013 having gained about 11 so far.
"The US dollar, and therefore buck-denominated precious metals, will be in focus again next week as the attention turns away from Brexit slightly and more towards economic fundamentals and US monetary policy," Fawad Razaqzada, market analyst for forex.com, said in a note.
Concerns about the global economy have made chances of a US rate rise in coming months less likely, analysts say, but much will depend on US economic data and markets will be watching non-farm payrolls due on July 8 in particular for clues. Societe Generale raised its gold price forecasts on Thursday on concerns about the ongoing political, financial and economic fallout of Britain's vote last week to leave the European Union.
Platinum marked its highest level since May 18 rising as high as $1,055 an ounce and was on track for its best weekly rise since October last year. Palladium, heading for its best week since early March, rose to its highest since May 13 at $605.40, and was up 1.2 percent at $602.05.