Gold futures rose Friday, supported by a weakening dollar and demand for refuge assets because of worries about the ability of the European Union to manage member states' sovereign debt.
The most actively traded gold contract, for June delivery, recently traded $5.80, or 0.4%, higher, at $1,528.60 U.S. a troy ounce on the Comex division of the New York Mercantile Exchange.
With Greek leaders meeting Friday in an attempt to agree on a plan to manage the country's economic crisis, and after Fitch cut its outlook on Japan's credit rating, market participants were reluctant to go into the long holiday weekend holding bets gold prices would fall.
Comex floor trading is closed Monday for the Memorial Day U.S. holiday.
Investors sometimes turn to gold during turmoil in other markets, as the precious metal isn't as linked to industrial cycles as are some other commodities and equities, and lingering worry about euro-zone economies have pushed gold higher for four of the last five sessions.
Silver futures were sharply higher Friday, continuing a recent trend of wide swings since plummeting from near-record highs above $49 U.S. a troy ounce to below $33 an ounce earlier this month. Benchmark silver futures are up more than 20% so far this year.
The most actively traded silver contract, for July delivery, was recently up 1.8%, at $37.99 U.S. a troy ounce.
Gold and silver were also supported Friday by a weakening dollar.
Precious metals, like other dollar-denominated commodities, can receive a boost when the greenback weakens, as it makes the futures cheaper for market participants using other currencies.
The ICE U.S. Dollar Index, which tracks the currency against those of some major U.S. trading partners, was recently at 75.098, down from 75.549 late Thursday in New York.
Gold also received a boost from a report that showed U.S. consumer spending slowed in April as rising prices hit economic growth. Spending increased by 0.4% in April, less than March's 0.5% gain, the Commerce Department said Friday. Adjusted for inflation, the increase was 0.1%.
Other precious metals followed gold's lead higher early Friday. July-delivery platinum was recently up 0.8%, at $1,791.80 U.S. a troy ounce. Palladium for June delivery was recently up 0.4%, at $760 U.S. a troy ounce.
