Gold prices a three-and-a-half-month high Friday -- and the U.S. dollar slumped to a one-week low -- after the new U.S. finance chief poured cold water on the "Trumpflation trade" that had boosted the greenback this year.
Treasury Secretary Steven Mnuchin said on Thursday that any steps U.S. President Donald Trump's administration takes on policy would probably have only limited impact this year, though he wants to see tax reform passed by August.
Spot gold was up 0.5% at $1,255.79 U.S. per ounce, after touching its highest since Nov. 11 at $1,258.45 U.S. earlier in the session. U.S. gold futures rose 0.4% to $1,256.40.
Restricting gains in bullion, a poll on Friday suggested French presidential candidate Emmanuel Macron would beat far-right leader Marine Le Pen, who has promised a referendum on European Union membership.
Gold prices were supported by tempered expectations of rate hikes by the U.S. Federal Reserve in the coming months, after minutes from the Fed's latest policy meeting struck a less hawkish note than expected.
In other precious metals, silver was up 1.1% at $18.35 U.S. per ounce. Silver has gained about 1.5% this week in what could be its ninth straight weekly gain.
Platinum rose 1.8% to $1,024.40 U.S. per ounce, while palladium gained 0.3% to $774.72 U.S.
