Gold held near its highest in more than a year on Friday as weak economic data lowered expectations of a December interest rate rise in the United States.
The dollar plunged to its weakest since early 2015 and U.S. bond yields held near 10-month lows, with the Federal Reserve expected to be more cautious after a rise in U.S. jobless claims and worries about the impact of hurricanes Irma and Harvey on economic growth.
A weaker dollar fuels demand for gold by making it cheaper for holders of other currencies and lower bond yields reduce the opportunity cost of owning non-yielding bullion. Interest rate rises meanwhile push up bond yields and boost the dollar.
Spot gold was down 0.14 percent at $1,346.90 after earlier hitting $1,357.54, its highest since August 2016. It was up 1.7 percent this week, on course for a third consecutive weekly gain.
U.S. gold futures for December delivery settled up 0.9 percent at $1,351.20.
Julius Baer analyst Carsten Menke pinned the rise to the weak dollar and hopes that interest rate rises would be delayed.