By Renita D. Young and Zandi Shabalala
NEW YORK/LONDON (Reuters) - Gold hit a four-month high on Friday and was on track for a fifth straight weekly gain as the U.S. dollar fell against the euro on an agreement for a political coalition in Germany.
Palladium hit a record high in a continued rally fuelled by tight supplies and increased demand in the automotive industry for autocatalysts in gasoline-burning vehicles.
Gold prices extended their rally after U.S. President Donald Trump said he would waive nuclear sanctions against Iran for the last time to give Washington and its European allies a chance to fix the "terrible flaws" of the 2015 nuclear deal. "This is a last chance," Trump said in a statement, which fed investor worries and boosted safe-haven demand for gold.
The dollar index <.DXY>, fell against a basket of currencies to its lowest since Sept. 8.
The euro jumped to a three-year high after party sources said German Chancellor Angela Merkel's conservatives and the Social Democrats (SPD) had agreed a blueprint for formal coalition negotiations.
"The agreement is one of the first movements in a long time that people say is EU-positive. Hence the strength in the euro and gold, as well," Hussey added.
A stronger euro makes dollar-priced bullion cheaper for European investors.
Both U.S. data reports tempered inflation worries.
"It's spiking, but platinum is starting to follow it higher," he added.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)