Gold set for weekly advance as silver trades near 11-month high

[SINGAPORE] Gold headed for a weekly increase as the dollar extended losses, boosting the metal's appeal as a haven. Silver, which entered a bull market this week, held near an 11-month high.

Bullion for immediate delivery was at US$1,246.52 an ounce at 9.25 am in Singapore from US$1,248.05 on Thursday, when the metal climbed as much as 2.1 per cent to US$1,270.38, the highest intraday level since March 17, according to Bloomberg generic pricing. Prices have advanced 1 per cent this week as a gauge of the dollar headed for a fourth weekly retreat.

The precious metal has risen 17 per cent this year as concerns over the global economic outlook drove volatility in financial markets, and central-bank policies around the world whipsawed currencies.

The Bloomberg Dollar Spot Index, which tracks the US currency against 10 major peers, has weakened 4.6 per cent this year as policy makers in Europe and Japan take steps to bolster growth and inflation at a time when the Federal Reserve is considering higher borrowing costs.

BLOOMBERG