Gold jumped more than 1.5% on Friday, breaking above $1,400 for the first time since September 2013, as hints of a rate cut from the U.S. Federal Reserve took a toll on the greenback and U.S. Treasury yields.
Tensions in the Middle East also boosted gold's rally, which has lifted the precious metal nearly $80 or 5% this week and almost 10% so far this year.
Spot gold was up 1.4% at $1,406.81 per ounce as of 0305 GMT, after earlier hitting its highest since Sept. 4, 2013, at $1,410.78.
Gold is set to post its biggest weekly gain since the week ended April 29, 2016, and was also on track for its fifth consecutive weekly rise.
U.S. gold futures rose 1% to $1,410.70 an ounce.
"The dovishness of the Fed and ECB, geopolitical tensions in the Middle East, and a technical breakout above $1,350 with volumes gave strong support for the metal," said Jigar Trivedi, a commodities analyst at Mumbai-based Anand Rathi Shares & Stock Brokers.
"Momentum is positive for the next half of the year. The way prices have risen, there could be a technical profit-booking, but the undertone is positive.
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