The FINANCIAL — Gold tracked equity markets to end slightly higher on Friday, even though persistent Eurozone debt worries and margin liquidation from other markets sent bullion to its largest weekly loss since September.
Bullion regained its footing after Thursday's sell-off, climbing above key chart support at its 50-day moving average, a level it breached during the previous session. Gold lost 3.5 per cent last week, its worst performance in nearly two months.
The metal rose in tandem with the S&P 500 as lower European sovereign debt yields eased investors' fears. News that Eurozone and International Monetary Fund officials had discussed collaborating to provide sufficient resources to tackle the region's debt crisis also helped.Spot gold edged down 0.2 per cent at $1,724.40 an ounce. In the previous session, bullion fell 2.5 per cent and hit a two-and-a-half-week low at $1,709.64 an ounce.
Last week's more than 3 per cent slump has turned the tables on a bullion market that had once again begun rising toward September's all-time high — not because of its value as a hedge against turmoil, however.
Over the past few weeks, gold has confounded market watchers by tracking equities, even as the European debt crisis escalated.
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