Gold extended gains on Thursday to a one-month high on a strong technical outlook and a U.S. dollar at a four-week low, as palladium prices reversed earlier losses to touch a fresh 17-year high.
The metal benefited from technically driven momentum after closing above its 100-day moving average on Wednesday for the first time since late November, analysts said.
"The weakness in the dollar is playing its part," Naeem Aslam, chief market analyst at ThinkMarkets, said. "We do think that this trend will continue into 2018. We expect the gold price to finish the year above $1,300 mark, and that would send a strong buy signal for traders."
The dollar came under pressure on Thursday from a recent dip in U.S. 10-year bond yields, reaching its lowest in nearly four weeks against a basket of currencies.
That helped drive broad gains across commodities, with benchmark Brent crude oil futures near their highest since mid 2015, and copper at a four-year peak.
The dollar index is down more than 9 percent so far this year, and is on course for its biggest annual loss since 2003.