Gold inches up ahead of important data

Gold inched up on Friday trading ahead of the release of important growth and inflation data from the euro zone and US.

The previous session, gold added $6.00 or 0.40% after closing at $1505.70 an ounce, while gold price was setin London at $1489.50 per ounce inclining from $1488.25 during the AM fixing.

Yesterday, gold got some support from the rise in Chinese and German inflation, but the effect did not last long as the firm dollar weighed on the gold's rebound.

Spot gold is trading at $1512.35 an ounce after recording a high of $1512.90 and a low of $1500.85.

Gold is set to end this week on advance, paring some of last week's drop when the sell off in commodities pushed the shiny metal from record high.

Among other precious metals, platinum rose to $1773.50 from the day's opening of $1767.50, palladium edged up to $719.00 from $712.50 and silver roared to $35.70 from $37.79, as of 07:20 GMT.

Oil also is showing slight soar to $99.40 a barrel from the day's opening of $98.82.

The dollar's rebound is putting a downside pressure on dollar denominated commodities, where the dollar index, which tracks the dollar movements versus a basket of major currencies, is hovering above 75.12 ahead of the release if important fundamentals.

The euro zone will release its first quarter GDP figures where the 17-nation economy is expected to expand 0.6% from the 0.3% growth recorded in the fourth quarter of 2010.

Thereafter, the US will release CPI with expectations referring to 0.4% rise in April from 0.5% in March. A rise in inflation may help gold to advance as a hedge against inflation, especially after the surge in Chinese and German inflation as seen earlier this week.