Gold futures post three percent weekly gain

CHICAGO, Feb. 16 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange settled slightly higher on Friday but saw the biggest weekly rise in more than one year.

The most active gold contract for April delivery inched up 90 cents, or 0.07 percent, to close at 1356.20 dollars per ounce, while the weekly rise reached 3.08 percent thanks to a weak dollar.

The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, once reached 88.26, a three year low on Thursday. Although the index managed to rebound above 89 on Friday, it still recorded a big weekly loss.

Gold and the dollar usually move in opposite directions, If the dollar goes down, gold futures will rise as gold, measured by U.S. dollar, becomes more attractive to investors using other strong currencies.

Following a period of turbulence, the U.S. stocks market firmly rebounded this week. However, if volatility returns to the equities, said analysts, appetite for safe-heaven gold will again increase.

Rising inflation data for January boosted expectations for possible four interest-rate rises this year by the U.S. Federal Reserve instead of three, yet lower retail sales in the same period might indicate stagflation in the U.S. economy, some observers feared.

As for other precious metals, silver for March delivery fell 8.4 cents, or 0.50 percent, to settle at 16.712 dollars per ounce. Platinum for April went up 11.2 dollars, or 1.12 percent, to close at 1,012.30 dollars per ounce. Enditem