London (Reuters) – Gold rose on Friday before the advance of the euro but still way to accumulate a fourth straight week of declines, given that irregular consumer demand and growing optimism about the United States Economic Outlook affect the appetite of investors for metal.
** Global shares were under pressure on Friday, after touching the most in eight months previously this week, by the resurgence of concerns about the health of the economies of China and the euro zone and by the return of attention to the debt burden of the Spain and Italy.
** This month the ingot price has fallen nearly 3 percent, as a change in the perception of investors about the US economy made havens such as gold or of the United States Treasury bonds less attractive compared with stocks and currencies of high-income.
** Also felt the pressure of the decline in the price of gold on the investment in funds that are backed by physical metal and are traded in markets, resulting on Friday in the largest daily reduction of holdings in three months.
** Gold spot won a 0.66 cent to 1.655,74 $ per ounce to the 1304 GMT, recovering from minimum of 1.627,68 dollars seen on Thursday, but was still targeting a 0.14 percent decline during the week, which would be the fourth consecutive weekly loss.
** “the strength of the economy of United States is negative for gold, from the perspective of the dollar and flows of portfolio to U.S. investors,” said Nic Brown, head of analysis of raw materials of Natixis.
** The inverse correlation of gold with the rate of the dollar, which broke a level key support on Friday, has maintained around 45 percent in the last week, indicating that the gold is still prone to fluctuate in direction opposite to the U.S. currency.
** Silver amounted 0.6 percent to $ 31,74 an ounce.
** Platinum gained 0.1 per cent to 1.615,74 $.
** Palladium increased 0.73 percent on the day to $653,47.
(Report of Amanda Cooper)
