Natalie Parkinson
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Gold Extends Climb Above $1,300

Gold headed for the biggest weekly advance since October as U.S. economic data that trailed estimates increased haven demand, with holdings in the biggest exchange-traded product expanding to an almost two-month high.

While the prospect of a reduction in asset purchases by the Federal Reserve helped spur a 28 percent slump in gold in 2013, the cuts to stimulus that began in January hurt emerging-market stocks and currencies and increased gold’s appeal as a haven. Bullion advanced 8.5 percent this year on concern that U.S. growth may be stalling and as the MSCI All-Country World Index of equities retreated 1.4 percent.

Gold for immediate delivery rose 0.4 percent to $1,308.37 an ounce by 10:34 a.m. in London. Earlier the price touched $1,310.70, the highest price since Nov. 8. Gold has traded above the 100-day moving average since Feb. 10, and is heading for a close above the 200-day moving average for the first time since February 2013. This week, bullion is up 3.2 percent. Futures for April delivery rose 0.6 percent today to $1,308.40 an ounce on the Comex in New York.

What are your forecasts for this metal?