The move came as U.S. Federal Reserve Chairman Ben Bernanke indicated the Fed is getting ready to make a move to boost the economy, likely a third round of quantitative easing.
Gold closed at $1,693.90 a troy ounce while silver added $1.003 to $31.37.
The dollar index fell 0.58 percent to 81.25.
The Canadian dollar rose to 98.62 cents and the British pound rose to $1.5865 while the euro rose to $1.2578 and the dollar fell to 78.4 yen.
2014: The Year in Music [PHOTOS]