LONDON: Gold firmed on Friday as investors weighed up the prospect of a US interest rate rise later this year, with data showing economic growth cooled in the fourth quarter helping prices recover from the previous day’s 2 per cent plunge.

Gold is still on track to post its biggest weekly fall in two months, however, on expectations that the Federal Reserve will hike rates this year for the first time in nearly a decade.

Spot gold was up 0.3pc at $1,260.40 an ounce at 1457 GMT, while US gold futures for February delivery were up $4.70 an ounce at $1,260.60.

Appetite for physical gold in Asia overnight remained muted despite lower prices.

Silver was down 0.5pc at $16.83 an ounce. Spot platinum was down 0.3pc at $1,216.55 an ounce, while spot palladium was down 0.5pc at $768.72 an ounce.

Published in Dawn January 31st, 2015

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