Gold futures rose for a third straight session after the dollar fell against the euro and oil surged to a new record above $122 a barrel, boosting the appeal of the precious metal as a hedge against inflation.
Gold for June delivery closed at $877.70 an ounce on the New York Mercantile Exchange, up $3.60 for the session.
The euro climbed as much as 0.6 percent against the U.S. currency, and crude oil soared to $122.73 a barrel, the highest ever. Gold rallied 31 percent last year as soaring fuel prices and a weaker dollar spurred a 4.1 percent gain in consumer costs.
Oil surged after supply was disrupted in Nigeria, causing tensions to heighten between Turkey and Iraq. The dollar fell for the second straight day against the euro after gaining 2.5 percent in the previous two weeks.
The precious metal reached a record $1,033.90 an ounce on March 17, when the euro and crude set previous highs. Gold gained $26.80 from Thursday's closing level of $850.90.
In currency markets, the U.S. dollar traded lower against most of its major rivals. The dollar index, which tracks the performance of the greenback against a basket of currencies, fell 0.3 percent to 72.96
Dollar weakness tends to benefit dollar-denominated commodities, such as gold and crude oil, as it makes them cheaper for holders of other currencies.
Seasonally strong physical demand should continue to provide a good base for gold in the coming sessions, and with oil prices setting fresh records, investors may look to increase their gold holdings as a hedge against inflation, said James Moore, an analyst at TheBullionDesk.com, in a research note.
Also on the Nymex, Silver futures for July delivery rose 3 cents, or 0.2 percent, to $16.86 an ounce. The price has climbed 25 percent in the past 12 months.
July platinum rose $42.40, or 2.2 percent, to end at $1,969.80 an ounce. June palladium rose $6.95 to close at $431.40 an ounce and July copper futures fell by 7 cents to end at $3.88 a pound