Gold added to sharp overnight gains to trade near its highest in almost four months on Friday and was on track for a sixth straight weekly gain as troubles at a Portuguese bank hammered equities and stoked safe-haven demand for bullion.
Spot gold inched up 0.3 percent to $1,338.20 an ounce by 0335 GMT, after closing up 0.7 percent on Thursday, when it rose to a peak of $1,345 - the metal's highest since March 19.
Gold has gained more than 1 percent this week. The sixth weekly gain would be gold's longest winning streak since Feb-March when it had a similar run.
Gold is getting a boost along with other safe-havens such as the Japanese yen and bonds, as European and U.S. stock markets fell on Thursday on investor fears over financial troubles at the family-owned holding companies behind Banco Espirito Santo.
Thursday's contagion across borders and markets is a vivid reminder of the crippling debt and economic crisis from which Portugal and other countries on Europe's southern rim are only just emerging.
Geopolitical tensions in the Middle East and Ukraine also continued to support gold, seen as an alternative investment to riskier assets such as equities.
In the physical markets, India surprised bullion markets by keeping the import duty on gold and silver unchanged at 10 percent in its fiscal budget, a move likely to limit overseas purchases by the second-biggest bullion consumer and further encourage smuggling.
Physical demand in other Asian countries was also weak due the recent jump in prices. In No. 1 buyer China, local prices have been on par with the global benchmark or at a discount, underscoring sluggish demand.
Among other precious metals, platinum and palladium were both headed for their fourth straight weekly gain, while silver was set for a sixth weekly rise as it tracked gains in gold.
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