Gold prices climbed to a near six-year high on Friday, surpassing the key $1,400 level on dovish signals from major central banks and rising dispute between the US and Iran.

Spot gold was up 0.5 per cent at $1,394.26 per ounce at 1240 GMT, after earlier hitting its highest since September 2013 at $1,410.78.

US gold futures rose 0.2 per cent to $1,399.4/ounce.

“The Iranian tensions provided the catalyst for gold to inch above $1,400, after threatening to break above that level since yesterday's dovish Fed outcome,” said Howie Lee, an economist at OCBC Bank.

In the physical market, dealers in India, the second-biggest global gold consumer after China, offered the biggest discounts in almost three years this week as local prices soared to record peaks.

Elsewhere, silver fell 0.6 per cent to $15.33/ounce. Platinum was up 0.2 per cent at $804.33 per ounce. Palladium climbed 1.2 per cent to $1,495.56 an ounce and was headed for a third consecutive weekly gain.

Brent oil up 5%

Brent oil rallied above $65 a barrel on Friday and was on track for a 5 per cent gain this week on fears of a US military attack on Iran that would disrupt flows from West Asia, which accounts for more than a fifth of the world’s output.

Brent crude was up $0.69, or 1.07 per cent, at $65.14 a barrel at 1210 GMT. The global benchmark jumped 4.3 per cent on Thursday and is on course for its first weekly gain in five weeks. US West Texas Intermediate crude was up 24 cents, or 0.42 per cent, at $57.31 a barrel.