Domestic gold futures still have room to grow following the recent commodities rally, which sent gold, copper and crude oil to multi-month highs last week.
The most traded gold contract on the Shanghai Futures Exchange (SHFE) rose 1.45 percent Friday to finish the week up nearly 4 percent, even though the contract missed out on late-day gains in international markets.
The December Comex gold contract jumped 4.5 percent last week to settle at $1,371 per ounce. The Comex contract hit a two-month high Friday, Reuters reported.
The precious metal has come back from a spate of selling in the second quarter by large investors. For example, Paulson & Co, the largest holder of the SPDR Gold Trust, sold nearly half of its position in the exchange-traded fund over the period, according to commodity analysts from the Australian bank ANZ.
Over the last week, SPDR increased its gold holdings, a sign that the flight of funds out of the trust is subsiding.
"Sentiment seems to have turned more positive over the past two weeks," the analysts wrote Thursday, though they also warned gold "was prone" to suffer a correction before moving higher.
In base metals, the most traded SHFE copper contract jumped 2 percent Friday to cap off a 3 percent gain for the week. The contract closed at 53,130 yuan ($8,688) per ton Friday.
The three-month copper contract on the London Metal Exchange (LME) increased about 1.2 percent Friday to settle at $7,400 per ton. Reuters reported that the contract hit a 10-week high.
The West Texas Intermediate crude oil contract touched a six-month high of $110 per barrel Thursday.