NEW YORK (CNN/Money) - Oil and gold prices climbed again Friday on geopolitical concerns and the dollar's continuing slide.

The dollar hit a new three-year low against the euro Friday, as the single European currency bought $1.044, up from $1.037 Thursday. The greenback's fall has made gold cheaper for overseas investors, adding to the demand for the safe-haven asset.

Gold for February delivery gained 30 cents to close at $349.70 a Troy ounce, near the $350.00 milestone.

"I think the [gold] market is subject to a minor retracement, but the factors around us are so strong that it looks like it could continue to move to higher ground afterward," said Frank Aburto, trader at F.C. Stone in New York. "War issues, the weakness of the dollar and strength in oil are working in favor of gold."

Prices steadied as investors cashed in earlier on gold's recent gains, while spot gold in Europe hit resistance after rising on strong U.S. and Asian performances Thursday.

Futures are still seen consolidating under last week's peak at $355.70, although the February contract hit a high of $351.50 Friday on the weak dollar and tensions over Iraq and North Korea that preserved gold's safe-haven status.

Fears that the United States could launch an attack on Iraq in the new year also helped sustain crude oil prices, now $10 a barrel higher than at the start of 2002. U.S. crude for February delivery set a fresh two-high year of $32.76 a barrel before settling up 23 cents at $32.72 on the New York Mercantile Exchange. London Brent gained 55 cents at $30.16 a barrel, having set a 15-month high of $30.39 in early business.

"We are in the middle of a fairly ferocious energy price spike," said analyst Paul Horsnell of J.P. Morgan. "The spike could be checked by a move back towards normality in Venezuela, or by a release of U.S. strategic reserves. However, the application of either of these brakes does not look particularly imminent, and in their absence the upwards pressure is likely to continue."

Venezuelan negotiators agreed Thursday to raise the pace of talks aimed at hammering out an accord on early elections demanded by the foes of President Hugo Chavez, who are calling for him to resign immediately.

Pressure is mounting on Chavez to settle the strike, now in its 26th day, or risk a complete collapse in the oil-dependent Venezuelan economy. So far there has been no sign of progress on the key elections issue.

Many managers and executives in state oil firm Petroleos de Venezuela (PDVSA) as well as oilfield and refinery laborers, tanker captains, pilots and dock crews have joined the dispute.

"We will return to work when we achieve our objectives, specifically the departure of Hugo Chavez and a call for elections," said a resolution overwhelmingly approved by PDVSA employees at a meeting Thursday.

Talks, brokered by Organization of American States Secretary General Cesar Gaviria, were declared in "permanent session" Thursday and were scheduled to continue Friday.

The strike has squeezed Venezuela's overseas oil sales to about 200,000 barrels per day (bpd) versus 2.7 million in November.

The U.S., a major importer, so far has no plans to release strategic government reserves to fill the supply gap.

Oil price gains also have found support from a U.S. and British military buildup in the Gulf as time runs out for Iraq to comply with disarmament demands.

Traders are worried that if the Venezuelan strike drags on, it could coincide with a loss of Iraq's supplies, were the U.S. to launch an assault against Baghdad.

That would remove exports of some 4.5 million bpd from the 76 million bpd world market and stretch spare OPEC capacity, held mostly by Saudi Arabia, to the limit. Iraq exports up to 2 million barrels of crude daily.

A Jan. 27 briefing by U.N. arms inspectors to the United Nations Security Council is widely seen as the next key event ahead of any U.S. attack.

Leading OPEC member Saudi Arabia says it will not allow any shortage on the world market, despite cutting back on exports for January as part of a December OPEC agreement.

So far OPEC officials insist there has been no sign of any real shortage on the world market. They may raise output quotas if prices for an index of cartel crudes stay above $28 a barrel for 20 working days. If prices stay high, ministers could sign off on a production change in mid-January.  

--from staff and wire reports