Gold prices were sent soaring on Friday, as signs of weak global growth rekindled investor interest in the safe-haven metal, keeping it on track for its first weekly gain in five, ahead of U.S. Gross Domestic Product data.
Spot gold was up 0.4% at $1,281.69 U.S. per ounce, as the sun came up over much of North America. The metal has risen 0.5% so far this week, and is poised for its first gain since the week ended March 22.
U.S. gold futures edged up 0.3 percent to $1,283.80 an ounce.
Asian shares dropped after world stocks were weighed down by data from Germany and Asia, suggesting that the global economy was still under slowdown constraints.
According a poll, major central banks are done tightening policy especially with the global growth outlook fatiguing across developed and emerging economies, along with scant prospects for a surge in inflation.
The view is supported by a recent slashing of its growth outlook by the Bank of Canada and a disclosure from the Bank of Japan that it will keep interest rates super-low for at least one more year.
The greenback held near a two-year peak on signs that the U.S. economy was doing significantly better than elsewhere, curbing gains for the bullion.
Earlier this week, gold prices fell to their lowest level this year to $1,265.90 U.S. an ounce, which helped reinstate some physical demand for gold.
Investors will now be keeping an eye out for the release of U.S. GDP data, due at 8:30 a.m. EDT on Friday.
Among other precious metals, silver was up 0.5% at $15.01 U.S. per ounce and has gained 0.6% so far this week.
Platinum rose 0.8% to $889.57 U.S. The metal has fallen 1.3% so far this week.
Palladium was down 0.1% to $1,412.97 U.S. per ounce. The metal is down 0.6% so far this week, its first weekly drop in three.
Related Stories
