Gold up 4th straight week

Reuters, NEW YORK/LONDON, (18/01) - Gold rose on Friday as weakness in U.S. equities, strong fund buying and Asian physical demand lifted bullion to its fourth consecutive weekly gain.

The market was surprised by news of Deustche Bank withdrawing from gold and silver benchmark setting, or fixing, as German regulators investigate suspected manipulation of precious metals prices by banks. Gold's recent rise has been supported by a drop in equities early in 2014 following a record run-up in stocks last year. However, analysts said that a rising interest-rate environment and a better economic outlook could pressure gold. Spot gold, which fell initially, climbed 0.8 percent to $1,252.11 an ounce by 2:45 p.m. EST (1945 GMT). For the week, it was up 0.5 percent, extending its weekly winning streak to four - its longest rise since September 2012. U.S. gold futures for February delivery settled up $11.70 at $1,251.90 an ounce, with trading volume about 40 percent below its 250-day average, preliminary Reuters data showed. Gold rose on Friday against the headwinds of a stronger dollar after fresh U.S. data supported the view the world's largest economy is improving enough to keep the Federal Reserve's stimulus-reducing measures on track. Data showed U.S. industrial output rose at its fastest clip in 3-1/2 years in the fourth quarter as factory activity closed out the year on a strong note, a sign of the economy's brightening prospects.