Gold prices advanced on Friday, supported by a drop for the dollar and expectations Spain was closer to asking for a full bailout from the European Union.
Gold futures for December delivery rose $16.60, or 0.9%, to $1,786.80 U.S. an ounce on the Comex division of the New York Mercantile Exchange.
Gold looks set to post weekly gains of nearly 1%. The metal’s recent surge has led to a technical indicator called the "golden cross," which could usher more gains for gold but historically it has not done so in the short term.
Gold has benefitted from the recently announced round of monetary stimulus from the U.S. Federal Reserve, as investors fear the impact of quantitative easing on the U.S. dollar and some have sought gold as their prime tangible asset.
The dollar remained under pressure, providing support for gold and other dollar-denominated commodities. The dollar index DXY -0.08% , which measures the U.S. unit against a basket of six major rivals, fell to 79.289 from 79.428 in North American trade late Thursday.
Meanwhile, the Financial Times reported that Spain and the European Union are in the process of drafting a new economic reform plan that could clear the way for Madrid to request a full bailout that would be accompanied by the activation of the European Central Bank’s plan for potentially unlimited bond purchases.
Speculation Spain could seek international aid was credited with lifting European equities as well as U.S. stocks.
In other metals trading, December silver futures rose 46 cents, or 1.4%, to $35.15 U.S. an ounce. December copper futures rose four cents, or 1.1%, to $3.80 U.S. a pound.
October platinum futures advanced $21, or 1.3%, to $1,645.30 U.S. an ounce. Palladium for December delivery rose $10.60, or 1.6%, to $671.85 U.S. an ounce.
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