PRECIOUS-Gold set for best week in five, palladium sets record high

* Palladium hits record high of $1,785.50 an ounce
* Silver climbs to a one-month peak of $18.33 an ounce
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl

(Adds comment, details, updates prices)
By Eileen Soreng
Oct 25 (Reuters) - Gold gained on Friday and was on course
for its best week in five amid continued uncertainty around
Brexit and the health of the global economy, while a sustained
supply crunch propelled palladium to a record high.
Spot gold XAU= was up 0.7% at $1,513.52 per ounce at 1238
GMT, having earlier hit its highest since Oct. 10 at $1,514.24.
The precious metal has gained about 1.5% this week.
U.S. gold futures GCcv1 were up 0.7% at $1,515.5.
"Brexit has gone into another limbo and there is still some
uncertainty over the progress of (U.S.-China) trade talks. These
are increasing risk aversion and pushing gold higher," said FXTM
analyst Lukman Otunuga.
The European Union agreed to London's request for a Brexit
deadline extension on Friday but set no new departure date,
giving Britain's divided parliament time to decide on Prime
Minister Boris Johnson's call for a snap election. Johnson will push ahead with plans to leave the European
Union and with the government's domestic agenda even if
lawmakers fail to back a snap election, his spokesman said.
On the trade front, top U.S. and Chinese trade officials
will discuss plans on Friday for China to buy more U.S. farm
products. In return, Beijing will request the cancellation of some
planned and existing U.S. tariffs on Chinese imports, people
briefed on the talks told Reuters.
Gold has gained about 17% this year mainly due to the
U.S.-China trade spat and the resulting impact on the global
economy.
Safe-haven buying is clearly a good solution for investors
given the current geopolitical and economic scenario, said
Afshin Nabavi, senior vice president at precious metals trader
MKS SA.
Data on Thursday showed new orders for key U.S.-made capital
goods and shipments declined in September, a sign that business
investment remains soft amid the trade war, building the case
for another U.S. rate cut next week. Elsewhere, palladium XPD= was down 0.2% at $1,774.68 an
ounce, having earlier hit an all-time high of $1,785.50.
Concerns about a supply crunch for the metal used in
autocatalysts have helped lift palladium prices by about 40%
this year, despite a weakening auto sector.
Palladium is in a strong uptrend supported by the
fundamental story, Saxo Bank commodity strategist Ole Hansen
said. "If we do break $1,785, we could see some additional
buyers into that break, taking palladium to the 1,800 level."
Silver XAG= climbed 3% to $18.31 per ounce after hitting
its highest since Sept. 25 at $18.33. It was up about 4% for the
week.
Platinum XPT= was up 0.9% at $931.84, on course for its
best week in eight.