Gold gained on Friday and was poised for a third straight weekly rise as a softer US dollar, falling Treasury yields and a dip in equities after US President Joe Biden's proposal to hike capital gains tax encouraged investors to flock towards bullion.
Spot gold was up 0.2 per cent at $1,787.11 per ounce by 07:05 IST, after hitting its highest since February 25 at $1,797.67 on Thursday. The metal has gained about 0.6 per cent so far this week.
US gold futures rose 0.4 per cent to $1,788.10 per ounce.
The dollar index fell 0.1 per cent against its rivals, making gold cheaper for other currency holders.
US 10-year Treasury yield ticked lower on news that Biden will propose a tax hike for high earners, to fund about $1 trillion in childcare, universal pre-kindergarten education and paid leave for workers.
The number of Americans filing new claims for unemployment benefits fell to a 13-month low last week.
Switzerland in March recorded its biggest monthly gold exports in 10 months as shipments to India leaped to their highest since 2013, Swiss customs data showed.
Uzbekistan's central bank will resume gold sales when it feels the price of the metal is peaking, deputy governor Behzod Khamraev told Reuters.
Global silver demand will rise this year to its highest since 2015, the Silver Institute said in a report on Thursday.
Palladium rose 0.1 per cent to $2,840 per ounce but was off a record $2,891.50 hit on Thursday. Many analysts expect a further run towards $3,000 per ounce as automakers ramp up purchases of the metal, worsening a supply shortage.
Silver eased 0.3 per cent to $26.10 per ounce. Platinum was little changed at $1,203.10.
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