(MENAFN - Baystreet.ca) Prices for gold picked up steam on Friday, recovering from the previous session's sharp fall, as the American dollar dipped and mounting concerns about a slowdown in global economic growth boosted demand for the safe-haven metal.
Spot gold had gained by 0.6% to $1,303.30 U.S. per ounce early Friday morning, after shedding about 1% the day before. It was on track for a small weekly gain for a second consecutive week.
U.S. gold futures rose 0.6% to $1,302.90 U.S. an ounce. The dollar slipped 0.2% against major currencies, and was on track for its biggest weekly loss since early December.
Analysts added that providing additional support to bullion were increasing signs of a global economic slowdown.
The Bank of Japan on Friday cut its assessment on overseas economies, saying those other countries were showing signs of a slowdown. The central bank also revised down its view on exports and output.
Meanwhile, comments from China's Premier about a slowing economy suggest that one of the world's biggest economy is struggling, which is offering gold a bit of support.
In the United States, data released on Thursday underscored growing pressure on the economy. Those Americans filing applications for unemployment benefits increased in number more than expected last week while new home sales fell more than expected in January.
In other precious metals, palladium gained 0.3% to $1,562.58 U.S. per ounce, and was on track for about 3% weekly gain.
Silver gained 1.2% to $15.36 U.S. an ounce, and platinum jumped 1.7% to $832.17 U.S.