Gold rebounded to a fresh three-week high on Friday, as investor risk aversion lifted appetite for the metal, putting it on track for a second straight weekly rise.
Spot gold rose as high as $1,277.70 U.S. an ounce, its highest since May 18, and was last up 0.2% at $1,270.86 U.S. an ounce. U.S. gold futures were up 80 cents at $1,273.50 U.S.
Spot silver touched a three-and-a-half-week high earlier in the session and was on track for its biggest weekly gain for one year, up 5.7%. Futures were last up 0.01%at $17.27 U.S. an ounce.
Gold is highly sensitive to rising interest rates, which lift the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced. Gold rebounded despite a stronger dollar, as global shares dropped and German's bund yields inched to a new record low.
Among other precious metals, platinum futures fell 1.2% to $991.90 U.S. and palladium futures were down 2.9% at $544.60 U.S.
