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Gold headed for biggest weekly loss in two months

Source : REUTERS
Last Updated: Fri, Oct 12, 2012 04:12 hrs
Wiener Philharmoniker gold coins are pictured at the Ginza Tanaka store in Tokyo

Gold was little changed on Friday, holding on to gains in the previous session when the dollar eased from a one-month high, but bullion was headed for its biggest weekly drop in two months.

FUNDAMENTALS

Spot gold was little changed at $1,768.49 an ounce by 0015 GMT, on course for a 0.7-percent weekly loss, its sharpest one-week fall in two months.

U.S. gold traded nearly flat at $1,770.40.

The number of Americans filing new claims for jobless benefits slid last week to the lowest level in more than four and a half years, according to government data that may provide a boost to President Barack Obama a month before voters go to the polls.

The IMF on Thursday backed giving debt-burdened Greece and Spain more time to reduce their budget deficits, cautioning that cutting too far, too fast, would do more harm than good.

Next year offers only a slight improvement for a global economy hit by recession in Europe and slowing or moribund growth in Asia and the United States, according to Reuters polls of hundreds economists worldwide.

Holdings of gold-backed exchange-traded funds fell for the first time in two weeks on Thursday. Holdings edged down 44,965 ounces from a record high of 75.03 million ounces.

The tension between Turkey and Syria helped support safe- haven sentiment.

Spot silver edged up 0.2 percent to $34.06, but was headed for a 1.2-percent fall this week, its biggest weekly loss in three months.

MARKET NEWS

U.S. stocks ended flat on Thursday after gains brought by a sign of improvement in the labour market were erased in part by a drop in Apple shares after a legal setback in a court ruling.

The dollar held steady on Friday, after coming off a one-month high in the previous session.




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