Gold edged above $1,590 an ounce last Friday, helped by a rebound in the euro and waning appetite for assets seen as higher risk, such as stocks, ahead of key U.S. inflation data later that day. Prices were headed for a second straight week of gains as investors still count continued quantitative easing measures in key economies and lurking risks in the euro zone among reasons to own bullion.
Reuters report showed that spot gold rose 0.3 percent to $1,594.79 an ounce by 1257 GMT, on course for a weekly gain of around one percent. U.S. gold futures for April delivery were up 0.2 percent at $1,593.80.
Signs of investor fatigue and higher downside risks to the gold outlook led Barclays’ analysts to cut its 2013 price forecast by 7.4 percent to $1,646 an ounce. It however said that there is scope for gold to gain traction, given the debt ceiling debate in the United States, scheduled for May.
“I think there is a feeling that the risk appetite is gone too far and I wouldn’t be surprised to see equities pulling back and gold coming back into favour a bit in coming days,” Standard Chartered analyst Dan Smith said.
