* Gold rises with Wall St despite weak US economic data
* Break above 200-day moving average triggers buying
* Gold ETF reports inflow, investment sentiment rises
* Coming up: US New York State manufacturing index Tues
(Adds comment, second byline, dateline, updates market
By Frank Tang and Clara Denina
NEW YORK/LONDON, Feb 14 Gold rose to a
three-month high above $1,300 an ounce on Friday, gaining 1
percent and notching its biggest weekly gain in six months, as
weak U.S. manufacturing output pressured the dollar and lifted
bullion's currency-hedge appeal.
A technical break-out above tough resistance at its 200-day
moving average, and signs of recovering investment demand in
gold exchange-traded funds, also triggered gold buying, traders
Bullion reversed its recent strong inverse link with
equities, which had been pressured by economic uncertainties and
On Friday, U.S. equities, measured by the S&P 500 index
, rose 0.5 percent as investors were willing to add
riskier investments by overlooking some soft economic data
stemming from bad weather.
"Risk-on is typically deemed bad for precious metals prices,
but the downdraft for the dollar and the steady-as-she-goes Fed
policy threatening slow retreat from an ultra-easy stance, is
boosting demand for gold," said Andrew Wilkinson, chief market
analyst at Interactive Brokers LLC.
Spot gold was up 1.2 percent at $1,317.90 an ounce by
2:06 p.m. EST (1906 GMT), after rising to its highest since Nov.
7 at $1,320.90. It was up around 4 percent for the week, the
largest such gain since mid-August.
U.S. gold futures for April delivery settled up
$18.50 at $1,318.60 an ounce, up for an eighth straight session
in the longest winning streak since July 2011.
Trading volume was about 10 percent below its 30-day moving
average, preliminary Reuters data showed.
The technical picture has improved over the past few
sessions and a move above its 200-day moving average, last seen
in August 2012, analysts said.
However, some traders noted that the 14-day relative
strength index (RSI) for spot gold jumped to about 74. A reading
above 70 is considered to be in overbought territory.
Gold has gained nearly 9 percent since the beginning of the
year, after a 28 percent drop in 2013, on doubts over the U.S.
economic recovery and as emerging-market turmoil weighed on some
Analysts remain cautious over the medium-term outlook for
gold, however. Many expect the U.S. economy to recover and the
dollar to rally, making the investment case for gold, usually
seen as a safe haven in times of trouble, still unattractive.
Investor sentiment seems to have improved, with SPDR Gold
Trust, the world's largest gold-backed exchange-traded
fund, posting its biggest inflow since late December, up 7.5
tonnes to 806.35 tonnes on Thursday.
Silver climbed to its highest since November at
$21.42 an ounce earlier and posted its second straight weekly
gain. It was up 4.3 percent for the day at $21.32.
Platinum gained 0.8 percent to $1,423.50 an ounce,
while palladium climbed 0.6 percent to $733.25 an ounce.
SETTLE CHNG CHNG VOL
US Gold APR 1318.60 18.50 1.4 1299.90 1321.50 134,486
US Silver MAR 21.421 1.026 5.0 20.445 21.440 66,629
US Plat APR 1430.10 13.50 1.0 1412.10 1431.50 9,842
US Pall MAR 737.60 6.50 0.9 730.00 740.45 5,375
Gold 1317.90 15.60 1.2 1300.35 1320.90
Silver 21.320 0.870 4.3 20.480 21.420
Platinum 1423.50 11.75 0.8 1415.25 1429.50
Palladium 733.25 4.35 0.6 733.30 739.50
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 141,723 172,213 186,052 18.69 0.23
US Silver 82,528 43,600 56,067 26.53 0.36
US Platinum 10,046 10,646 13,326 17.78 -0.15
US Palladium 6,973 4,042 5,542 19.08 0.56
(Additional reporting by A. Ananthalakshmi in Singapore;
Editing by Nick Zieminski; Editing by David Evans and Dale