Gold inched higher again in early trading on Friday, adding to its recent success. The metal gained amid the release of news that China's gold reserves have surged over the last five years.
June-dated gold rose to $914.10 an ounce, up $7.50 on the session.
China increased its gold reserves by 76% since 2003 to 1,054 tons via domestic purchases and refining scrap metal, Hu Xiaolian, head of the State Administration of Foreign Exchange said in an interview with the Xinhua News Agency. Thus, the country became the fifth biggest nation to have higher reserves.
The metal closed in the green for a fourth time this week. Gold rallied $41.50 per ounce for the week - the first gain in five weeks for precious metal.
The dollar dropped to a new multi-week low against the yen and also hit its lowest mark in 1 1/2 weeks against the euro. Gold usually moves opposite the dollar because of its hedge value.
On the economic front, Commerce Department report showed that durable goods orders fell 0.8 percent in March following a downwardly revised 2.1 percent increase in February. Economists had expected orders to fall 1.5 percent compared to the 3.5 percent increase that had been reported for the previous month.
Later, a separate Commerce Department report showed new home sales fell 0.6 percent to an annual rate of 356,000 in March from a revised February rate of 358,000. Economists had expected new home sales to remain unchanged compared to the 337,000 originally reported for the previous month.
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