Gold ticked up on Friday, poised for a second straight weekly gain, as worries about global outlook and simmering geopolitical tensions boosted haven demand on the metal.
Data released this week from the U.S. showed that retail sales stalled in July, while initial jobless claims rose more than forecast last week, where later in the day eyes will focus on U.S. University of Michigan confidence for August.
In Europe, euro area growth stagnated in the stagnated in the second quarter after Germany posted a contraction of 0.2 percent in the same period, more than analysts’ forecasts of a 0.1 percent drop.
The BOE lowered the economy’s growth projections, while slashed wage growth forecast to 1.25 percent this year, compared with previous forecasts of 2.5 percent. In the same context, new credit in China unpredictable plunged.
Regarding geopolitical tensions, still there are worries in Ukraine after a Russian convoy moved to Eastern borders carrying humanitarian aids to rebels.
So far, the shiny metal has gained more than 9 percent this year from the geopolitical tensions in Ukraine and Middle East, taking advantage of its safe haven merit.
However, prices may still face some downside pressure due to the weak physical demand from top buyers China and India.
The Dollar Index also remained firm to trade near 11-month high versus a basket of major currencies to trade. The dollar index is meanwhile hovering around 81.62.
Gold resumed is currently trading around $1313.30, near its highest level in three weeks, after hitting a high of $1313.88 and a low of $1311.04.
A weekly closing above $1313 may help the shiny metal to continue its rally, shielded by the physiological support of $1300.
Crude for October’s delivery retreated to trade around $93.94 after hitting a bottom of $93.90.