Gold futures traded higher Friday as the U.S. dollar lost some steam and weakened in relation to other major currencies.
Gold for June delivery advanced $18.20, or 1.2%, to $1,593.30 U.S. an ounce on the Comex division of the New York Mercantile Exchange.
The contract had jumped 2.5% in Thursday’s North American session, finding some support around $1,550 U.S. an ounce in a reversal from heavy selling seen earlier this week. Read more on Thursday's relief rally.
Investors remained skittish about investments considered riskier such as commodity and equity markets, as fears of a run on banks moved to Spain and hurt confidence worldwide.
July silver also turned around, recently gaining 62 cents, or 2.2%, to $28.64 U.S. an ounce.
Copper for the same month’s delivery added two cents, or 0.6%, to $3.50 U.S. per pound.
Against a backdrop of escalating Europe worries, the dollar had extended a recent string of strength in early trading, but it lately let that advantage slip. The dollar index , which measures the U.S. unit against a basket of six currencies, declined to 81.388, off from 81.454 late Thursday.
A stronger greenback can pressure dollar-priced commodities including metals as it makes them more expensive to holders of other currencies.
Also Friday, July platinum , advanced $4.90, or 0.3%, to $1,458.30 U.S. an ounce, while June palladium rose 80 cents, or 0.1%, to $606.50 U.S. an ounce.
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