LONDON, July 11: Gold climbed to a three-month high in Europe on Friday, supported by firmer oil, while platinum extended gains made in Asia to rise 2 per cent.

Spot gold was at $949.00/950.00 an ounce up from $944.10/945.30 late in New York on Thursday. Earlier it touched a session high of $949.10, its strongest since April 17.

The market still seems very well bid, and we may try higher later today said Rory McVeigh, a senior trader at Commerzbank.

US data will be the focus of today’s movement. Gold rallied nearly 2 per cent on Thursday, as rising oil prices pushed the metal through technical stops.

The precious metal tends to move in line with crude, as it is often bought as a hedge against oil-led inflation. Strength in oil prices also boosts the appeal of commodities as an asset class.

Oil is firmer again this morning, extending yesterday’s 4 per cent gains, amid rising geoplotical worries in Iran and Nigeria, and on fears over supply disruptions in Brazil.

The other main external driver of gold prices, the dollar, was steady against the euro on Friday as equity markets ticked up. Gold moves in the opposite direction to the dollar, as it is often bought as a currency hedge.

A weaker greenback also makes dollar-priced commodities such as gold cheaper for holders of other currencies.

Traders are now eyeing US economic data due out later on Friday for clues as to the future direction of the currency markets, and consequently of gold.

The Reuters/University of Michigan preliminary consumer sentiment indicator for July, due for release at 1355 GMT, is expected to fall to a fresh 28-year low.

Meanwhile platinum ticked up, rising 2 per cent as signs of firmer Chinese demand for the metal used in autocatalysts and ongoing supply fears linked to the South African supply shortage fuelled buying.

Spot platinum rose to $2,026.50/2,046.50 an ounce from $1,994.50/2,014.50 late in New York, having earlier hit a one-week high of $2,035.00 an ounce.

Among other precious metals, spot palladium rose to $452.00/460.00 an ounce from $445.00/453.00 an ounce late in New York, while silver rose to $18.34/18.39 an ounce from $18.28/18.33 late in New York.—Reuters