Gold surged to a record high above $1,100 an ounce on Friday as investors sought safety after data showed the U.S. unemployment rate unexpectedly jumped to 10.2 percent in October. While doubts about an economic recovery boosted gold, other precious metals with an industrial component fell, their demand outlook dented. “Gold rallied early on the unemployment numbers being higher than expected.

It fueled thoughts of additional stimulus and reinforced the concept that the Fed will not be able to raise rates any time soon,” said Frank McGhee, head precious metals trader at Integrated Brokerage Services in Chicago. U.S. employers cut 190,000 jobs in October, greater than the 175,000 fewer jobs forecast, and the unemployment rate rose to 10.2 percent, a 26-1/2-year high that was above average forecasts of a 9.9 percent rate.

Dealers said gold still enjoyed support from prospects of central banks buying the yellow metal to diversify reserves. “The market has the bit between their teeth — all these investors have piled into gold in a quasi-physical sense and now they are being supported in that by the actions of Mr Central Bank,” said RBS metals analyst Stephen Briggs. Gold hit a record high at $1,100.90 per ounce, up more than 25 percent this year.

By 3:45 p.m. EST (2045 GMT), it was bid at $1,096.65 a troy ounce from $1,089.55 late in New York on Thursday. The trigger for the surge this week was news that the International Monetary Fund had sold 200 tonnes of gold to the Reserve Bank of India for $6.7 billion. “People are focusing on pent up demand for gold from central banks in emerging markets,” said Michael Lewis, head of commodities research at Deutsche Bank. “The central bank community for the first time in 20 years is possibly going to be a net buyer of gold having been a net seller since 1988,” he said. Some think Asian central banks may not hurry to follow India’s lead given current record prices and the availability of cheaper domestically produced gold.

“Indian buying was very significant, but those getting excited about the potential for copy cat moves need to consider a number of factors,” said David Thurtell, analyst at Citi. “Culturally, India is more favorably disposed to gold than every other country. Second, it might be politically dangerous to be accumulating reserves at the all-time price high.”

The central bank story has offset some selling by investors as seen in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust. SPDR’s holdings fell 0.055 tonnes to 1,108.344 tonnes on Thursday, marking the first decline since Oct. 30. Spot silver was bid at $17.35 in late New York business down from $17.37 late on Thursday. Platinum was quoted lower at $1,338 than $1,353.50 and palladium fell to $328.50, even with late Thursday dealings.