Gold hit a new high for the month as another set of weak jobs data convinced more investors that tapering of the US Fed's monetary programme is unlikely to start this year.
US unemployment claims over the past week fell less than expected to 350,000. It came just two days after the delayed non-farms payroll number also disappointed.
Traders said the figures underline that there may be too much uncertainty over the jobs picture in the US at present for any attempt to curb the current stimulus measures.
Spot gold rose US$11 to US$1,344, with sentiment boosted by another poor day for the dollar which struggled against the yen, sterling and euro. Gold traditionally moves in the opposite direction to the US currency.
The gold price has fallen by 20% this year, largely on fears that the Fed will start to pull the plug on it US$85bn monthly bond buying programme, but has rallied strongly since the partial Fed shutdown.
Solid manufacturing figures from China this morning also lifted commodities generally. Demand from China for gold has been a constant this year, which has helped to offset sales from gold held in exchange traded funds.
Silver was also on the rise, adding US$0.22 to US$22.74, while platinum gained US$18 to US$1,448.
Randgold Resources flat at 4,640p
Fresnillo up 31p at 1,025p
Anglo American up 10p at 1,505p