Gold slipped from a three-month high on Friday after data showed the U.S. economy had contracted by less than expected in the fourth quarter, taking some of the heat out of safe-haven buying.
Spot gold climbed 2 percent to $926.90 an ounce, its highest since Oct 10. It was quoted at $918.90/920.90 an ounce at 1406 GMT, up from $906.75 in New York late on Thursday. In the immediate wake of the data it slipped to $916.60.
Gold priced in euros hit a record high of 720.53 euros.
"On first glance the (GDP) figures are generally good, so they should be negative for gold," Calyon analyst Robin Bhar said. "Growth is better than expected, but deflation is also stronger, so it is a bit of a double whammy for gold."
The U.S. Commerce Department said fourth-quarter gross domestic product fell at a 3.8 percent annual rate, the lowest pace since the first quarter of 1982.
Analysts had forecast GDP contracting 5.4 percent in the fourth quarter.
Gold is still being supported, however, by interest in the precious metal as a haven from risk.
U.S. gold futures for February delivery on the COMEX division of the New York Mercantile Exchange were up $15.80 at $920.80 an ounce.
Market talk of China taking an interest in gold as an alternative to U.S. Treasuries, and of a European fund buying bullion, also helped support prices.
Gold has risen around 3 percent this week as investors have scrambled for the safety of gold and bullion-backed assets such as exchange-traded funds.
"The ETFs were up another 15 tons yesterday," Simon Weeks, director of precious metals at the Bank of Nova Scotia, said, adding safe haven demand was driving the market.
The world's biggest gold-backed ETF, New York's SPDR Gold Trust, said its holdings jumped more than 10 tons on Thursday to a record 843.59 tons.
SPDR's holdings have risen more than 63 tons or 8 percent since Dec 31.
European equity markets and U.S. stock index futures turned higher after the U.S. GDP data, showing a better appetite for assets such as stocks and shares.
The dollar also pared gains against the euro. A new wave of risk aversion hit the currency markets earlier on Friday, with the yen and dollar edging higher as investors worried about risk.
