The price of gold surged higher in afternoon dealing after seeing little movement in early dealing Friday, ending the week up nearly 4 percent as the precious metal's hedge appeal was boosted by geopolitical tensions.
Gold for February rose $21.60 to $869.60 an ounce, and is up about 6 percent so far this month.
Gold generally moves opposite the dollar, but with the dollar little changed in quiet dealing Friday, the surge in gold prices was sparked by developments in the Middle East, where Palestinian militants attacked southern Israel with rockets and tensions flared between Pakistan and India.
In economic news Friday, official data revealed that Japanese unemployment rose to 3.9% in November from 3.7% logged in October.
Japan's industrial production declined by a seasonally adjusted 8.1% month-on-month in November, showing a decrease for the second consecutive month, a preliminary report from the Ministry of Economy, Trade and Industry said Friday.
The price of crude advanced sharply in subdued dealing Friday, climbing away from a four-year low after Saudi Arabia and the UAE began to cooperate with OPEC's record production cuts announced last week.
Crude for February jumped $2.25 to $37.60 a barrel, bouncing back after settling at a 4-year low near $35 on Christmas Eve. Oil markets were closed for Christmas on Thursday.
