PRECIOUS-Gold rises above $1,300, posts biggest weekly gain in 6 months

* 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
Y Feb 14 (Reuters) - Gold rose to a

ce on Friday, gaining 1
percent and notching its biggest we

three-month high above $1,300 an ou
nekly gain in six months, as
weak U.S. manufacturing output pressured the dollar and lifted

moving average, and signs o

bullion's currency-hedge appeal.
A technical break-out above tough resistance at its 20
0f recovering investment demand in
gold exchange-traded funds, also triggered gold buying, traders

certainties and
emerging-market jitters.
On Friday

Bullion reversed its recent strong inverse link with
equities, which had been pressured by economic
u, 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

licy threatening slow retre

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
oat from an ultra-easy stance, is
boosting demand for gold," said Andrew Wilkinson, chief market
analyst at Interactive Brokers LLC.

0.90. It was up around 4 percent for the week, the

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 $1,3
2t 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

The technical picture has improved o

in the longest winning streak since July 2011.
Trading volume was about 10 percent below its 30-day moving
average, preliminary Reuters data
sver 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

nning of the
year, after a 28 percent drop in 2013, on doubts ov

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 beg
ier the U.S.
economic recovery and as emerging-market turmoil weighed on some
equity markets.
Analysts remain cautious over the medium-term outlook for
gold, however. Many expect the U.S. economy to recover and the

cked exchange-traded
fund, posting its biggest inflow since l

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-b
aate 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,

412.10 1431.50 9,842
US Pall MAR 737.60 6.50

while palladium climbed 0.6 percent to $733.25 an ounce.
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
10.9 730.00 740.45 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

Platinum 10,046 10,646 13,326 17.78 -0.15

US Gold 141,723 172,213 186,052 18.69 0.23
US Silver 82,528 43,600 56,067 26.53 0.36
S 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 Ev
ans and Dale


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