TOKYO (Reuters) - Gold prices inched up on Friday but were off a six-week high hit the previous day, with investors eyeing the dollar and stocks for direction as growing recovery hopes fuel inflation concerns and boost bullion's appeal as a hedge.
Gold may also benefit from broad strength in commodities as investor risk appetite grows with the rally in equities markets.
Traders said activity was subdued but that they were looking at stock markets, oil prices, the dollar and how overseas markets develop later in the day to determine whether gold can advance toward $960 levels, which they said was the near-term resistance level.
"Risk appetite seems to have picked up quite a bit as seen in rising stock markets," said Adrian Koh, an analyst at Phillip Futures in Singapore.
"If we are looking at gold from a commodities point of view (including oil), then an increase in risk appetite could also support gold prices, as people would tend to buy riskier assets such as commodities," he said.
But if investors view gold as a safe-haven, then a rise in risk appetite would weigh on gold.
"But I guess the former is predominant for now," he said.
Spot gold edged up 0.2 percent to $948.80 per ounce as of 0306 GMT, compared with New York's notional close of $947.15 per ounce o
Gold may also benefit from broad strength in commodities as investor risk appetite grows with the rally in equities markets.
Traders said activity was subdued but that they were looking at stock markets, oil prices, the dollar and how overseas markets develop later in the day to determine whether gold can advance toward $960 levels, which they said was the near-term resistance level.
"Risk appetite seems to have picked up quite a bit as seen in rising stock markets," said Adrian Koh, an analyst at Phillip Futures in Singapore.
"If we are looking at gold from a commodities point of view (including oil), then an increase in risk appetite could also support gold prices, as people would tend to buy riskier assets such as commodities," he said.
But if investors view gold as a safe-haven, then a rise in risk appetite would weigh on gold.
"But I guess the former is predominant for now," he said.
Spot gold edged up 0.2 percent to $948.80 per ounce as of 0306 GMT, compared with New York's notional close of $947.15 per ounce o
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