Gold prices rose for a third session on Friday to hit their highest since September, with a slump in the U.S. dollar helping drive bullion towards its fifth-straight weekly gain.
Spot gold had edged up 0.5 percent to $1,328.84 an ounce by 0703 GMT, after earlier touching its highest since Sept. 15 at $1,330.34.
The metal is up 0.7 percent so far this week and is set for its longest run of weekly gains since a streak that finished in the week ending April 14.
U.S. gold futures were up 0.5 percent at $1,329 an ounce.
Spot gold is expected to test resistance at $1,329 per ounce, with a good chance of rising more to the next resistance level at $1,341, according to Reuters technical analyst Wang Tao.
“There was some strong buying out of China on Friday suggesting some physical demand ahead of Lunar New year,” said Stephen Innes, APAC head of trading at Oanda.
Higher rates could dent demand for non-interest-paying gold. Investors will be watching the U.S. Consumer Price Index (CPI) data due later on Friday.
Among other precious metals, spot silver rose 0.8 percent to $17.11 an ounce. Silver is on track for its first
weekly loss in five weeks, down 0.6 percent so far this week.
Platinum rose 0.7 percent to touch its highest since Sept. 11 at $991.40 an ounce. Platinum was heading for its fifth straight weekly gain, rising 1.9 percent so far this week.
Palladium was up 0.5 percent at $1,088.50 an ounce, after dropping to a more than one-week low at $1,075.50 on Thursday.
