Gold heads for biggest weekly gain

Gold heads for biggest weekly gainOn Friday, gold headed for its biggest weekly gain in a month as equities regained strength after fresh European efforts to resolve the debt crisis eased worries about a global recession.

Gold gained 1 percent to reach an intraday high of $1,665.99 an ounce and stood at $1,659.10 by 0648 GMT, up $9.75, bullion hit record around $1,920 in early September.


“Technical factors have been slightly positive recently, but have been slow to create any upside. The bullish focus for the market today will rest on payrolls, recapitalisation of European banks, and on generally slow economic growth.”

The physical sector was abuzz with activity, supporting prices. Steady purchases by jewellers and investors across Asia in recent weeks led to tight supply of gold bars in Singapore and Hong Kong, keeping premiums at their highest since at least February.

“The premiums should stay high. I am already quoting premiums at $2 to a high of $4 for immediate delivery. You can get gold bars at $2 premiums, but there’s a two-week waiting period,” said a dealer in Singapore.

“The payroll number will be a driver of trade today, but will jostle metals prices only if it’s significantly far from expectations,” said Tom Pawlicki, precious metals and energy analyst at MF Global.

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