Gold rallied to its highest in 28 years above $770 an ounce on Friday as investors poured money into the precious metal due a struggling U.S. dollar and tensions between Turkey and Iraq. Platinum held near record highs ($ 1450 ), supported by supply concerns following the closure of two mines in main producer South Africa. Silver and palladium also firmed.

Gold has gained as much as 20 percent this year on fund buying driven by record-high oil, the Federal Reserve's surprise move to cut interest rates by 50 basis points, a weak U.S. dollar and recently, tensions in northern Iraq.

The dollar held near a record low against the euro on Friday after data showing weakness in the U.S. job market and regional manufacturing activity as well as poor earnings from the U.S. bank bolstered chances of an interest rate cut.

The euro eased to $1.4284 but was within sight of a record high of $1.4311 hit on this week. There may be some resistance at $790 but overall sentiment is bullish. $755 should be a good support level.

Gold is often preferred as a safe haven in times of crisis, and firm energy prices also raise the metal's role as a hedge against inflation.

Oil held firm within sight of its new $90 high on Friday as the U.S. dollar plumbed new lows and pre-winter fuel stocks languished below norms, lending support to an over 13 percent surge in under two weeks. London Brent crude dipped 18 cents at $84.42 a barrel.

The flare-up in political tension between Turkey and Kurdish rebels in northern Iraq has supported gains as traders fear it may stem the flow of Iraq's sporadic northern oil exports, or eventually disrupt broader Middle East shipments.

Oil's climb toward an inflation-adjusted peak above $100 has alarmed OPEC, which may call for an early formal meeting to discuss a second output increase.

Although U.S. oil stocks rose this week, crude inventories stand about 4 percent below a year ago, while gasoline and distillate stocks are about 7 percent below last year, according to the latest government data.