Gold steady above $1,300
Singapore, February 14, 2014
Spot gold hit fresh three-month highs on Friday and looked set to post its biggest weekly gain since October as more weak US data raised fears about economic growth, burnishing the metal's appeal as a safe-haven.
US gold futures climbed for an eighth straight session - their longest winning streak since July 2011.
Traders were cautious on whether gains could be held as equities were also higher and with prices set to face technical resistance at $1,307.
"(The recent gains) definitely look like a short-covering rally to us. We don't see the volumes, wealth management clients are not buying," said Davis Hall, global head of foreign exchange and precious metals advisory at Credit Agricole Private Banking.
Hall said there could be selling due to the rally above $1,300 as investors tried to take profits.
"There is not much upside beyond $1,350. We would be sellers as we move beyond $1,320, we would be buyers again when prices fall back to $1,250."
Spot gold had risen 0.1 percent to $1,303.69 an ounce by 0337 GMT, having hit a fresh three-month high of $1,307.20 earlier in the session. It is up about 3 percent for the week - the largest such gain since mid-October.
US gold futures for April delivery also hit three-month peaks of $1,307.30.
Silver climbed to its highest since November and was poised to post its second straight weekly gain.
The latest boost for prices was from data on Thursday that showed US retail sales fell unexpectedly in January and more Americans filed for jobless benefits last week, the latest signs the economy started the year on a softer footing as unseasonably cold weather took its toll.
Gold is often seen as a safe-haven bet during times of economic uncertainty and generally has an inverse correlation with the stock markets and the US dollar. - Reuters