Gold headed for 5th weekly decline on stimulus outlook

Singapore, (27/9) -- Gold slipped for a second session on Friday and was on track for its fifth weekly drop, hit by persistent uncertainty over the Federal Reserve's stimulus outlook. Spot gold eased 0.2 percent to $1,320.79 an ounce by 0025 GMT, bringing the week's losses to 0.3 percent. The metal has fallen over 5 percent in as many weeks. U.S. House of Representatives Republicans on Thursday refused to give in to President Barack Obama's demand for straightforward bills to run the government beyond Sept. 30 and to increase borrowing authority to avoid a historic default. The volume of gold transferred between accounts held by bullion clearers fell for a second straight month in August, reflecting subdued demand for the precious metal, data from industry group the London Bullion Market Association showed. Some Indian banks, which are primary dealers of bullion, re-started imports for exports after the customs department gave a green signal to some lots. China's gold output in the first seven months of the year totalled 232.189 tonnes, up 11.5 percent from the same period last year, the China Gold Association said.