Gold hits one-week high on weaker dollar, economic concerns
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Gold prices rose to a one-week high on Friday as dollar weakened, while growing economic concerns put bullion on track for its best week since atleast late-March.
A weaker greenback makes bullion attractive for overseas buyers, while gold is also considered a safe haven during times of political and economic uncertainty.
Spot gold was up 0.2% at $1,846.09 per ounce by 1229 GMT, after climbing about 1.9% in the last session. U.S. gold futures rose 0.2% to $1,844.20.
Recession fears have grown recently and because of the volatility in equity markets there will be more interest in gold, said Xiao Fu, head of commodities markets strategy at Bank of China International.
A stronger-than-expected U.S. jobless claims data has also underlined the risks to economic growth, she added.
The U.S. dollar was headed for its worst week since early February, with a global equities gauge set for its longest weekly losing streak on record amid investor worries about slowing growth and high inflation. [MKTS/GLOB] [USD/]
"The fact that the U.S. dollar has been noticeably weaker since yesterday is lending tailwind (for gold)," Commerzbank analysts said in a note.
Gold has gained about 1.9% so far this week, recovering from 3-1/2-month lows hit earlier in the week.
Data showed holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.7% on Thursday, its first inflow since April 19. [GOL/ETF]
"It remains to be seen whether this will turn out to be more than just a flash in the pan. Any lasting price recovery would require ETF investors to return," Commerzbank said.
Spot silver added 0.2% to $21.93 per ounce, and was up about 3.8% for the week.
Platinum rose 0.1% to $963.56, while palladium eased 0.7% to $1,993.28. Both were set for weekly gains.
