LONDON - Gold has firmed as concerns over the outlook for the US economy revived interest in the metal as a haven from risk, but the metal struggled to break through tough resistance after earlier hitting a one-month high.
Spot gold was bid at $US1,213.05 an ounce at 1506 GMT, against $US1,211.20 late in New York on Thursday. US gold futures for December delivery eased $US2.00 to $US1,214.70.
The metal is on track to post its first consecutive two weeks of gains since late June, lifted by weak economic data from the United States, with a soft payrolls reading last Friday followed by weak jobless numbers on Thursday.
But it has struggled to build on gains that earlier took it to a one-month high at $US1,217.35. A raft of US data released on Friday, including retail sales, CPI and consumer confidence numbers, failed to have much impact on the market.
"The market showed a very muted reaction to CPI and retail sales numbers," VTB Capital analyst Andrey Kryuchenkov said.
"The market is well supported, but at the moment momentum is slowing," he added.
"For an immediate push, you will need some more negative macro news or statements... (to spark) another flight to safety."
European shares rose 0.4 per cent in choppy trade after better-than-expected US consumer sentiment data lifted US stocks. Equities had fallen in earlier trade after retail sales data suggested momentum in consumer spending was weak.
The dollar rose against the euro to hit a fresh three-week high in mid-morning trade. Gold, which often moves in the opposite direction to the dollar, pared gains in tandem, but overall remains persistently rangebound.
"Gold seems to clearly lacking a direction as it's unsure whether it should rise to reflecting the broad economic chaos across the globe, or drop on the back of strong US dollar," senior analyst at Richcomm Global Services, Pradeep Unni said.
Risk shock needed
More bad news on the economy may be needed to get prices rising again, analysts said.
"I think you need more of a risk shock to stimulate a very strong inflow into gold that is likely to push prices back through $US1,250 again," said RBS analyst Daniel Major.
He sees gold in the $US1,150-1,225 range until significant new risk aversion enters the market.
Oil steadied after earlier rising 1 per cent in a technical rebound after a three-day decline, while base metals also gave up gains.
Investment demand for physically backed gold exchange-traded funds picked up. Holdings of the largest, the SPDR Gold Trust , climbed by nearly 1 tonne on Thursday after rising more than 3 tonnes a day before, its biggest one-day inflow since June 29.
High prices weighed on jewellery demand in key gold-buying centres, however, with traders in India reporting a dip in demand as prices rose.
"I have some five orders in the $US1,210-$US1,215 range, most of my orders are below $US1,200," one Mumbai dealer said.
Silver was at $US17.97 an ounce versus $US18.02. India's largest importer of bullion, MMTC, said its silver imports fell more than 44 per cent in the year to end March as high prices hit demand.
Platinum was at $US1,516 an ounce versus $US1,525.50 and palladium at $US470.93 against $US467.
Gold's price rise means platinum has become increasingly good value in comparison, with the platinum-gold ratio slipping to a one-month low of 1.26 on Friday.
