TOKYO (Reuters) - Gold rose above $1,000 on Friday as the precious metal continued to benefit from a weaker dollar amid growing risk appetite and inflation fears due to stronger oil prices.
The precious metal topped $1,000 an ounce on Tuesday for the first time since February, with spot gold staging a stunning run to an 18-month high of $1,007.45 on the same day, on technical buying momentum and a slide in the dollar.
News that Barrick Gold (ABX.TO)(ABX.N) was cutting its hedgebook of forward gold sales also helped fuel gains.
"Fears about inflation are what is providing the support in the market now," said Kazuhiko Saito, chief analyst at Fujitomi Co Ltd.
Gold was at $1,001.50 per ounce at 1:31 a.m. EDT, up 0.6 percent from the notional New York close of $995.50.
U.S. gold futures for December delivery were at $1,003.4 per ounce, up 0.7 percent.
December gold futures rose on Tuesday to as high as $1,009.70, their highest since February.
It remains to be seen, however, whether gold will be able to maintain these lofty levels, or mark new highs.
Saito said gold's performance on Friday, when there was a possibility it could fall in fund profit-taking, would be crucial.
"Whether gold manages to hang on to $1,000 today will be important," he said.
The dollar hit a seven-month low against the yen on Friday after solid Chinese economic data triggered dollar-selling against higher-yielding currencies and other majors.
The dollar extended losses to hit its lowest level this year against the euro on Friday as broad dollar selling gathered pace following Chinese data that buoyed hopes for the global economy.
A weaker dollar enhances gold's allure as an alternative asset, a factor which has helped fuel this week's rally.
Oil prices rose to top $72 a barrel on Friday, extending the previous session's four-day rally after a U.S. report showed a surprise decline in crude stockpiles and OPEC said it would maintain official output curbs.
Data on Friday showed the global economy was on track to lift itself out of its slump.
