Gold prices stable

Pakistan (June 1)  Gold steadied after a three-day losing streak on Friday, but was heading for its biggest weekly drop in two months as an improving US economic outlook dented its appeal as an investment-hedge.

Spot gold was little changed at $1,256.50 an ounce by 0635 GMT, but not far from a 16-week low of $1,251.10 hit in the previous session. It is headed for a second monthly drop in three months. The metal is down nearly 3 percent for the week, under pressure from stronger equities and a firmer US dollar.

Thursday data showed that the US economy contracted for the first time in three years in the first quarter, but other data over the week on jobless benefits, manufacturing and consumer confidence indicated the economy was recovering well.