Gold futures on the COMEX Division of the New York Mercantile Exchange bounced off on Friday, while the dollar has fallen, as markets expect further stimulus measures by European Central bank.
The most active gold contract for February delivery rallied 11. 5 dollars, or 0.7 percent, to 1,751.3 dollars per ounce.
Gold has got a boost after European Central Bank President Mario Draghi hinted on Thursday that the institution might be willing to take more-aggressive steps to stem the region's debt crisis, but only if the 17 nations that share the euro unite behind a plan that could tame years of runaway spending.
A trader mentioned that many analysts say that "more- aggressive steps" equals to more quantitative easing, which usually benefits the precious metal, as "more money there is in circulation, the less value a dollar or euro has", increasing appeal of gold as an alternative assets.
The U.S. Labor Department said Friday that U.S. economy created 120,000 jobs in November and the unemployment rate fell to 8.6 percent, its lowest level in more than two and a half years.
Market analysts pointed out that the positive market sentiment supports the euro, weighing on the greenback. Gold has received some support from the weaker dollar, as it make dollar-denominated precious metal cheaper to investors holding other currencies.
Silver for March delivery pared 7.3 cents, or 0.2 percent, to 32.686 dollars per ounce. Platinum for January delivery dropped 8. 7 dollars, or 0.6 percent, to 1,548.5 dollars per ounce.
