Gold gained for a third day on concern that a new round of stimulus by the US Federal Reserve will stoke inflation, weakening the dollar and boosting demand for the metal as a store of value.
Platinum rose for a 12th day. Gold for immediate delivery rose as much as 0.4 per cent to $US1776.55 an ounce and was at $US1775.75 at 10.02am in Singapore.
Prices climbed 2 per cent last week, reaching $US1778 on Friday, the most expensive since February 29.
December-delivery bullion rose 0.2 per cent to $US1777 an ounce on the Comex.
The Fed said last Thursday it will expand holdings of long-term securities with open-ended purchases of $US40 billion of mortgage debt a month and hold the federal funds rate near zero until at least the middle of 2015.
Gold soared 70 per cent from the end of December 2008 to June 2011 as the Fed bought $US2.3 trillion of bonds in two rounds of so-called quantitative easing, or QE.
The Dollar Index, a measure against six major trading partners, traded 0.3 per cent from a six-month low reached on Friday.
‘‘It’s the remnants of the QE announcement,’’ said David Lennox, a resources analyst at Fat Prophets, in Sydney. As long as the US dollar is weak, gold prices will be supported, he said.
Inflation expectations measured by the break-even rate for five-year Treasury Inflation Protected Securities surged on Friday to the highest since May 2011.
The US central bank plan came a week after China and Europe announced stimulus measures.
Holdings in exchange-traded products backed by gold rose to a record for the ninth straight session on Friday, gaining 0.4 per cent to 2503.6 metric tonnes, data tracked by Bloomberg showed.
Spot platinum advanced for the longest winning streak, according to data stretching to 1987, as mine workers in South Africa, the biggest producer, protest over pay.
The metal gained as much as 0.4 per cent to $US1715 an ounce before trading at $US1710.50. The price reached $US1715.24 on Friday, the highest since February 29.
Silver climbed as much as 0.6 per cent to $US34.8625 an ounce and traded at $US34.605.
Palladium rose as much as 0.6 per cent to $US700.50 an ounce and was at $US698.75.