The precious metal has been heading upwards since it bottomed at $611.30/oz eleven days ago, helped by recent tensions between Iran and the Western World and thin end of year markets.
"Having broken through key chart levels at $630, further gains could be in store for gold should it be able to hold above $630 and position for a break higher in the New Year," said a daily note from Standard Bank in London.
Overall, gold was relatively flat at $635.03/oz by 13:21 on Friday, ignoring a strong dollar that continues to remain under $1.32 against the euro, following the release of favourable US economic data on Thursday afternoon.
So far this December the gold price has retraced from $648.20/oz at the start of the month to as low as $611.30 by the middle of December and back up to its current price above $630/oz.
Standard Bank says there is potential for further upside in the price of the yellow metal. "Suspected funds re-positioning for the coming year after its recent corrective phase would also likely provide support in the interim. Resistance is now likely pegged around $640 with support at $624," said the bank.
The dollar was last at $1.3166 against the euro, compared to $1.3148 late on Thursday.
Platinum was up $7/oz at $1 117.50/oz, while palladium was quoted at $327.50/oz, up $6.50/oz from its previous close.
