Gold attempts to end the week on gains

Gold inched up on Friday trading, making an attempt to end the week on an advance to continue its rally towards new records after the halt of its upside trend that was triggered by the sell-off in commodities earlier this month.

The previous session, gold added $9.90 or 0.67% after closing at $1497.10 an ounce, while gold price was setin London at $1496.50 per ounce inclining from $1491.25 during the AM fixing.

Gold prices have been moving in a narrow range this week and the previous one following the sharp drop in the week that ended May 6. So far, the precious metal is moving between the $1471 and $1504 this week, it finds resistance at $1500 Psychological level and technical resistance at $1505.

The shiny metal benefited from the dollar's ease in its rebound as it is girding for the first weekly decline in two after a parade of downbeat data increased speculations the Fed would keep interest rate low to boost recovery.

Housing data released this week witnessed a drop as housing starts and building permits fell earlier this week, whiled existing home sales dropped 0.8% in April, relative to the prior 3.7% advance recorded in March, according to data released on Thursday.

The dollar index, which tracks the dollar movements versus a basket of major currencies, was little changed today traded near the day's opening level of above 75.00, amid absence of fundamentals from the US.

Also, gold benefited this week from pessimistic Japanese growth data, and the mounting debt concerns in Japan.

Japanese growth data showed that the economy contracted 0.9% in the quarter ending March from the revised -0.8% in the fourth quartet of 2010, while the BoJ kept interest rate unchanged to boost the economy that was adversely affected by March's damaging quake.

On the other hand, ECB policy makers ruled out the idea of restructuring the Greek debt after a clash with political leaders which may make repaying debt a difficult mission for the debt-strapped economy.

Spot gold is trading at $1502.15 an ounce after recording a high of $1503.02 and a low of $1492.85, while oil rose to $99.75 a barrel after opening at $98.93.

Among other precious metals, platinum soared to $1773.00 from the day's opening of $1765.70, palladium edged up to $733.70 from $725.50 and silver surged to $35.50 from $35.16, as of 07:55 GMT.