Gold Prices Notch First Weekly Gain In Four As Asian Demand Rises

Gold prices were little changed on Friday as a strong dollar limited gains, but the precious metal notched its first weekly rise in four as seasonal demand from Asia kicked in.Demand from Asia, including China, India and exchange-traded funds (ETF), has helped prop up prices this week.

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Spot gold was up 0.1 % at $1,267.23 an ounce by 2:57 p.m. EDT (1857 GMT). For the week, prices rose 1.4 percent, clawing back part of the 6.6 % shed over the last three weeks.

 

U.S. gold futures ended the session up 0.02%t at $1,267.70.

 Demand from India is expected to remain elevated as festivals, including Dhanteras and Diwali, will be celebrated at the end of the month – two of the most important Hindu festivals and a time when gold is traditionally given as a gift, Commerzbank analysts said.

 

However, the dollar index, which measures the greenback against a basket of currencies, was up 0.4 % at 98.734 after touching its highest since February on Friday.

 

Holdings of the SPDR Gold Trust, the world's largest gold-backed ETF, rose 0.31 percent to 970.18 tonnes on Thursday. SPDR holdings have risen 2.3 % so far this month.

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