LONDON: Gold rebounded on Friday as mixed U.S. data tempered expectations of a Fed rate hike this year, but was still set for its biggest monthly loss since September on a steady dollar and a near seven-year high for European shares.

Gold has fallen around 7 per cent from a five-month high above $1,300 an ounce hit in January as expectations of a U.S. rate increase hurt its appeal as an insurance against risk.

Initially lower, spot gold was up 0.6pc at $1,214 an ounce by 1545 GMT, while U.S. gold futures rose $3.90 to $1,213.90 an ounce. Spot prices have gained 1pc on the week, but have fallen 5.3pc in February.

China’s gold imports from Hong Kong rebounded in January from a three-month low in December, reflecting increased demand ahead of the Lunar New Year holiday.

Published in Dawn, February 28th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play