Other precious and base metals struck multi-year and historic high points amid gold's surge. Among soft commodities, sugar reached a ten-year peak in New York.

The Commodities Research Bureau's index of 17 commodities rose to 322.11 points on Friday from 314.80 points the previous week.

GOLD: Gold prices hit 506.78 dollars per ounce in London on Friday, the highest level since February 1983, before succumbing to profit-taking.

The value of gold has risen by 22 percent since the start of 2005.

Gold had breached the 500-dollar level on Tuesday, for the first time in 18 years.

"At last, gold has breached the fabled 500-dollar level," said Barclays Capital metals analyst Yingxi Yu, adding that the level had been reached owing to aggressive fund buying.

Sharply increased demand from investment funds has pushed gold prices higher in recent months amid creeping inflation in the United States.

Gold is seen as a safe haven against high inflation.

On the London Bullion Market, gold prices jumped to 499.75 dollars per ounce at the late fixing on Friday from 495.90 dollars the previous week.