Gold prices hit their highest level since October Friday and headed for a fourth straight week of gains, steered by U.S. President Donald Trump's calls to lower interest rates and uncertainty surrounding his trade policies.

Spot gold rose 0.7% to $2,774.19 per ounce, as of 0854 GMT. Prices are at their highest since Oct. 31, when they hit a record high of $2,790.15.

U.S. gold futures for February delivery rose 0.6% to $2,781.40 per ounce.

The dollar hit a one-month low, making bullion less expensive for foreign buyers.

Gold's move towards a fresh all-time high has coincided with a correction in the dollar which is lower following remarks by Trump that suggest he may go soft on tariffs and settle for a trade deal with China, independent analyst Ross Norman said.

"We see gold as likely to hit $3,175 during 2025."

On Thursday at the World Economic Forum, Trump said he would demand that interest rates drop immediately. In an interview with Fox News Trump said he would rather not have to use tariffs over China.

Zero-yield gold is known as a hedge amid political and economic turmoil and tends to do well in a low interest rate environment.

Trump's remarks come before the Federal Reserve's meeting next week, where the policymakers are widely expected to leave rates unchanged.

Spot silver was up 1.4% at $30.87 per ounce, palladium gained 0.8% to $999.09 and platinum 1% to $952.29.

All of the three metals were poised for weekly gains.

Platinum and palladium will likely experience some downward pressure in the near term, said Zain Vawda, market analyst at MarketPulse by OANDA.

"Moving forward, sanctions on Russia could influence the market, considering Russia's role as a major palladium producer."

Earlier this week, Trump said he would likely impose new sanctions, taxes and tariffs on Russia if Ukraine deal not reached.