Gold near 2-wk high, set for biggest weekly gain since Jan

Singapore (Mar 20)  Gold held recent gains to trade near a two-week high on Friday and was headed for its biggest weekly jump since January, after the Federal Reserve cautioned over its rate hike path and U.S. economic growth.
Spot gold was steady at $1,171.20 an ounce by 0730 GMT, near a two-week high of $1,177.46 hit on Thursday. The metal is up about 1 percent for the week - its biggest weekly gain since late January.

Gold had dipped to a four-month low earlier this week as concerns mounted over higher U.S. interest rates which could dent demand for non-interest bearing bullion.

The Fed, however, sounded a cautious note on the health of
the economic recovery after its two-day policy meet this week,
and slashed its median estimate for the federal funds rate and
expressed concern over the strength in the
dollar.
    "Gold (is) still getting traction from dovishly perceived
FOMC statement, short-covering and fresh purchases," said HSBC
analyst James Steel, referring to the Federal Open Market
Committee.
    Gold's rise on Thursday despite a higher dollar and weaker
oil prices could indicate underlying strength, he said.
    Typically, a stronger dollar dents demand for bullion as a
safe-haven and makes it more expensive for holders of other
currencies. Weaker oil could also reduce gold's appeal as a
hedge against inflation.
    Post-Fed, SPDR Gold Trust, the world's largest gold-backed
exchange-traded fund, saw its first inflows since Feb. 20, also
boosting sentiment.
    In the physical markets, Chinese buying was steady, with
premiums on the Shanghai Gold Exchange staying at a robust $6-$7
an ounce on Friday.
    Sustained physical buying could further support prices.
    In other industry news, six institutions will start setting
gold prices electronically on Friday, as Intercontinental
Exchange completes a sweeping change to London's bullion
benchmarks and dispenses with the century-old gold "fix".
  
    Some of the lowest valuations in decades and rising pressure
on Africa's gold producers to restructure or perish are likely
to spur a wave of acquisitions in a sector attracting a growing
number of potential buyers.
    Among other precious metals, silver and platinum
 were headed for weekly gains after a two-week slide. 
    Platinum continued to trade at about $50 discount to
gold, a factor that is likely to stoke physical demand according
to the Perth Mint, which is ramping up production of its
platinum coins.

Source: Reuters