Gold retreats from 7-week high before U.S. GDP data

Gold slides from 7-week week high on Friday trading on some profit taking by investors, before crucial U.S. fourth quarter GDP data, yet the metal is probably heading for the fourth consecutive weekly advance.

The shiny metal, along with other commodities, shares and high-yielding currencies benefited from optimism in markets which spread after the Fed's pledge to keep interest rate low and on a report Greece is comings close to reaching a debt swap deal with private sector bondholders.

The Fed vowed to keep borrowing cost at its low level through late 2014 and said policy makers are considering more asset purchases to bolster the economy.

Today, eyes will be on the U.S. annualized fourth quarter GDP data which is expected to show 3.0% expansion compared with 1.8% growth in the third quarter.

Furthermore, a report by a Greek newspaper Ethnos on Wednesday stated that private-sector creditors will accept a debt swap deal with the Greek government with an interest rate of 3.75% for new loans after Charles Dallara, who represents private-sector bondholders in the negotiations, met with bankers in Paris on Wednesday.

Both Greek and private-sector bondholders sides said negotiations showed progress on Thursday and talks will continue on Friday, where they expect a deal to be reached within a couple of days.

The improvement in the sentiment enhanced commodities led by the shiny metal which has been moving with market sentiment since the end of last year, leaving safe haven characteristic to the U.S. dollar.

The dollar index, which tracks the dollar movements versus a basket of major currencies, is currently doing attempts to rebound where it is hovering around 79.40, near the day's opening level.

Spot gold is currently around $1717.60 an ounce on some profit taking, after touching a high $1724.19 while the day's low was recorded at $1714.45.

Crude oil is also traded lower near $99.60 a barrel, compared with the day's opening of $99.84.