Gold heads for biggest weekly loss in a month

LONDON (Aug 2) Gold fell for a fifth session on Friday, heading for its biggest weekly loss in a month as strong U.S. economic data raised fears the Federal Reserve may start to taper its commodities-supportive stimulus measures.

Positive jobless benefits and factory activity data followed stronger-than-expected U.S. GDP numbers this week. The Fed has said its policy remains driven by data, even though it gave no signs in a statement on Wednesday that it was set to wind down its $85 billion monthly bond-buying measures.

"We are still expecting the Fed to taper its QE in September," said Barnabas Gan, an analyst at OCBC Bank, referring to quantitative easing.

"The labor data, along with GDP, is pretty positive and allows for the Fed to taper this year."

Gold was down $22.77 to $1287.49 while silver shed 26 cents to $19.34.