Gold inched higher on Friday in thin trade

Gold inched higher on Friday in thin trade, taking cues from higher equities after upbeat U.S. economic data encouraged investors, while the persistent gloom hanging over the euro zone weighed on sentiment.

Data showing a drop in U.S. jobless claims encouraged modest gains in equities and commodities. The euro traded steady, on track to end the year slightly lower against the dollar.

Concerns about the euro zone debt crisis kept investors on edge. Spanish and Italian bond yields crept higher on Thursday, even as Italy’s Senate passed a vote of confidence in the government of Prime Minister Mario Monti that put a final seal on an emergency austerity budget.

Spot gold edged up 0.4 percent to $1,611.96 an ounce by 0254 GMT (9:54 p.m. EST). It was on course for a weekly rise of nearly 1 percent, snapping two weeks of consecutive losses.

U.S. gold inched up 0.2 percent to $1,613.90, headed for a weekly gain of 1 percent.

Technical signals were mixed for spot gold as it is trapped in the range of $1,597 and $1,618, and a move outside the range will indicate its next direction, said Reuters market analyst Wang Tao.

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Posted by admin on Dec 23 2011. Filed under Gold price. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry