INSUBCONTINENT EXCLUSIVE:
Gold rose on Friday, recovering from the previous session's sharp fall, as the dollar dipped and mounting concerns about a slowdown in
global economic growth buoyed demand for the safe-haven metal.
Spot gold had gained by 0.4 per cent to $1,301.58 per ounce, as of 0625 GMT,
after shedding about 1 per cent the day before
It was on track for a small weekly gain for a second consecutive week.
US gold futures rose 0.5 per cent to $1,301.40 an ounce.
The dollar
slipped 0.1 per cent against major currencies, and was on track for its biggest weekly loss since early December.
"The dollar has weakened
and gold as a safe-haven asset has seen support from Brexit uncertainty
As long as gold can hold the $1,290 level, it can reach the first level of $1,302 and then $1,310," said Ajay Kedia, director at Kedia
Commodities in Mumbai.
"The support we are now seeing at $1,290 shows that as long as there is lack of clarity on the (Brexit) deal, gold
should be holding well."
British lawmakers voted on Thursday to seek a delay in Brexit, setting the stage for Prime Minister Theresa May to
renew efforts to get her divorce deal approved by the parliament next week.
Providing additional support to bullion were increasing signs of
a global economic slowdown, analysts said
The Bank of Japan on Friday cut its assessment on overseas economies, saying they were showing signs of a slowdown
It also revised down its view on exports and output.
Meanwhile, comments from China's Premier about a slowing economy suggest that one of
the world's biggest economy is struggling, which is offering gold a bit of support, said Brian Lan, managing director at dealer GoldSilver
Central in Singapore.
In the United States, data released on Thursday underscored growing pressure on the economy
The number of Americans filing applications for unemployment benefits increased more than expected last week while new home sales fell more
than expected in January.
"Data from US is not so good
So, weak US data and Brexit are holding gold prices up," Kedia said, adding the prevailing uncertainty around US-China trade was also
supporting gold.
A summit to seal a trade deal between US President Donald Trump and Chinese President Xi Jinping will not happen at the end
of March as previously discussed because more work is needed in US-China negotiations, Treasury Secretary Steven Mnuchin said on
Thursday.
In other precious metals, palladium gained 0.2 per cent to $1,560.47 per ounce, and was on track for about 3 per cent weekly
gain.
Silver gained over 1 per cent to $15.35 an ounce, and platinum jumped 1.4 per cent to $829.69.
