(Reuters) – On Friday, gold inched up slightly as a string of unsatisfying U.S. Economic Data strengthened beliefs that the central bank would keep its stimulus intact until 2014.
Spot gold increased $6.32, or 0.47%, at $1,352.10 an oz. by 1:26 p.m. EDT (1726 GMT), hovering below its highest level since Sept. 20 of $1,351.61.
Bullion was headed for a 1.7% gain on the week having hit four-week highs on Thursday taking advantage of weaker-than-expected U.S. jobless claims information earlier within the week.
That boosted prospects the Fed won’t begin to rein its stimulus program till well into next year.
U.S. gold futures for Dec delivery also increased $2.70, or 0.2%, at $1,353.
The London A.M. fix is $1,341.75, and the P.M. fix is $1,347.75.
Thomas Capalbo, a precious metals broker at New York futures brokerage Newedge said “There are no real indication that things have gotten far better, and no indication spoken communication that we tend to area unit aiming to see tapering before long, thus that is aiming to be useful for gold and doubtless silver too.”
Bullion eked out gains while the greenback recovered off a close to 9-month low against other major currencies.
U.S. Treasury yields listed close to three-month lows.
The yellow metal, however, has rallied around 8% in but period of time as unsatisfying U.S. economic information and lingering budget uncertainties in Washington exaggerated gold’s safe-haven attractiveness.
HSBC noted “The recent trend in gold and its volatile reaction to the foremost recent economic unleash show the market continues to be heavily data-dependent for worth direction,”.
New York’s SPDR Gold Shares, the world’s largest gold-backed exchange-traded fund (ETF), holdings dropped 0.2% or 1.8 tonnes on Thursday. An outflow of quite ten tonnes was seen on Monday followed by a rise of six tonnes on Tuesday.