Gold climbs

London (Jan 5)   Gold rose to a two-week high on Friday, as traders returned to the market, after prices plunged to a six-month low, and as weaker equities spurred demand for the metal as a safe-haven asset.

The yellow metal, headed for its best weekly performance since October after posting its largest annual decline in 32 years, took some support from strong Chinese physical demand.

Other precious metals followed suit, with platinum touching a six-week high and palladium climbing to a three-week high, heading for its biggest weekly gain since October.

“The attempted sell-off (on Tuesday) through the $1,184 level...didn’t really trigger any follow-through selling (and) gave some potential buyers the confidence to move back in,” said Ole Hansen, head of commodity strategy at Saxo Bank.

Spot gold was up 0.6 per cent to $1,231.6 an ounce by 1223 GMT after hitting $1,238.70 earlier - its highest since Dec 18. It was on course for a 1.5pc weekly gain.—