Gold Rises as Euro Struggles

Gold firmed to near a one-week high on Thursday as the euro struggled to sustain gains and shares slipped on uncertainty over the pace of economic recovery in the United States.

Gold held within reach of record highs in Europe on Friday, supported by haven demand against a backdrop of persistent sovereign risk in Europe and after lacklustre U.S. data raised doubts over wider economic recovery.

The precious metal’s gains were limited, however, as immediate concern over the euro’s outlook were allayed by solid demand at Spanish bond auctions, which calmed peripheral euro zone debt markets.

Spot gold was bid at $1,243.95 an ounce at 0813 GMT, against $1,243.40 late in New York on Thursday. U.S. gold futures for August delivery eased $3.20 to $1,245.50. Prices reached $1,250.65 on Thursday, close to the record $1,251.20 it hit last week. Its move came despite a rise in the euro, weakness in which has lifted gold this year as investors bought the metal as an alternative to paper currencies.