Gold registers third-weekly gain

On Friday, gold futures finished the trading session higher. Mixed U.S. jobs data and dollar weakness helped to revive demand for the yellow metal. However, upbeat figures on U.S. consumer sentiment and manufacturing activity constrained the gains.

Gold for April delivery rose $6.50, or 0.39%, to settle at $1,668.50 an ounce on the Comex division of the New York Mercantile Exchange.

Tracking the most-active contracts, prices finished nearly 0.9% higher on the week. This marks gold’s third-weekly gain during the past ten weeks.

Traders are very sensitive to the news nowadays. Gold prices jumped after the jobs data, then pared some gains after other economic data came out mostly better-than-expected.

Gold prices are constrained by the data flow nowadays. Negative news about the economy is good for gold, as if slow growth continues more aggressive quantitative easing by the U.S. Federal Reserve will be implemented.

In general, activity for U.S. manufacturers strengthened in January. U.S. consumer sentiment also climbed, more than analysts expected, though overall levels remained relatively low.

Ongoing super-accommodative central-bank policies will continue to provide relative support for gold prices at least during the furst half of 2013.

Meanwhile, a research note from Credit Suisse Friday warned that dollar-denominated gold prices may have peaked in 2011 for the current trading cycle.

U.S. stock markets rallied, with the DOW ending above 14,000 on Friday for the first time in five years.

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