Gold on Friday surpassed the key $1,450 U.S. level for the first time since May 2013, after comments from a top Federal Reserve official bolstered expectations of an interest rate cut, while fresh tensions in the Middle East further supported bullion.
Spot gold hit $1,452.60 U.S. an ounce in early trade, its highest since May 10, 2013, before easing 0.2% to $1,442.56 early Friday.
The metal has gained nearly 2% so far this week, on track for a second consecutive weekly gain.
U.S. gold futures jumped 1.1% to $1,444.10 U.S. an ounce.
At a central banking conference on Thursday, New York Fed President John Williams said policymakers need to add stimulus early to deal with lower inflation when interest rates are near zero and cannot wait for an economic disaster to unfold.
Williams’ remarks sent the American dollar to a near two-week low, making gold cheaper for holders of other currencies.
Tension in the Middle East also boosted the metal’s safe-haven appeal. The United States said on Thursday a U.S. Navy ship had "destroyed" an Iranian drone in the Strait of Hormuz after the aircraft threatened the vessel, but Iran said it had no information about losing a drone.
In news concerning other metals, silver rose 0.5% to $16.42 U.S. per ounce, its highest since June 25, 2018. The metal has risen 8% so far this week, on track for its best week in three years.
Platinum gained 0.6% to $853.70 U.S., while palladium eased 0.1% to $1,524.30 an ounce.
