Gold prices hit their highest in seven years on Friday and were set to post their best week in one-and-a-half months, as demand for the safe-heaven asset was boosted by a surge in new coronavirus cases in South Korea.

South Korea reported 52 new cases of the virus, taking the national total to 156, while Japan reported the first fatalities from aboard a cruise ship that accounts for the biggest cluster of infections outside China.

Spot gold rose 0.4% to $1,625.05 per ounce by 0409 GMT, after hitting its highest since Feb. 2013 at $1,626.27 earlier in the session. For the week, prices have risen 2.5% so far and were set to post their biggest weekly percentage gain since Jan. 3.

U.S. gold futures were up 0.4% at $1,627.40.

Source : Reuters