Gold heads for second weekly gain, silver hits 11-year high

"Signs that may be slowing down raise the prospect of cuts in the coming months, which tend to support gold and silver prices," said Frank Watson, at .

On the side, expectations of continuing strong in got a boost after the country announced more efforts to stabilise its crisis-hit sector.

Demand in China, which contributed to the gold price rally in recent months, is becoming more crucial as the market is waiting to see if high gold prices prompt some to slow down purchases and as outflows from physically backed gold exchange-traded funds continue.

Global central banks actively bought gold in 2022-2023, but the largest purchaser among them, China's central bank slowed down buying in April when spot gold prices hit a record high of $2,431.29.

"Central banks these days are much more nuanced in their buying behaviour and will alter the programme to be more opportunistic - that is to say buying on dips and scaling back on rallies," independent analyst Ross Norman said.

In the physical market, dealers were offering lower premiums in China and deeper discounts in India this week.

On the , the 15% increase in gold price since the start of 2024 keeps margins robust for gold miners. According to the , gold miners' global average total expenses were at $1,342 per ounce in the last quarter of 2023.

Meanwhile, silver and platinum got support from higher prices for gold and . [MET/L]

Spot silver rose 2.7% to $30.39 per ounce after breaking above a major resistance level of $30. The last time silver hit the $30 price level was in early 2021, but sustaining it for an extended period has eluded silver for more than a decade.

Platinum added 0.8% to $1,065.60, after hitting a one-year high on Thursday. The metal is up 7% so far this week due to continued structural deficits.

Palladium dropped 0.4% to $990.00, under pressure from rising of electric vehicles.