Gold ticks up

Gold inched up on Friday as higher oil prices boosted its safe-haven appeal, but the metal looked set to post its third straight weekly loss, weighed down by a strong dollar.
Bullion ended 2014 down nearly 2 percent, following a 28 percent slump the previous year, as its investment appeal tapered amid better-performing equities. Many analysts expect another tough year for gold, with the dollar expected to gain further on expectations of higher US interest rates and a recovering economy.
“We think it is likely that gold may test $1,000 in 2015, but thereafter we expect a rebound in prices as investors may rush in to buy the precious metal on dips,” said Howie Lee, analyst at Phillip Futures, in a note this week.
A stronger dollar, global deflationary pressures, slowing Chinese demand and higher rates will hurt gold prices, Lee said. Spot gold rose 0.3 percent to $1,184.85 an ounce by 0317 GMT, following an uptick in oil. Liquidity was thin in post-holiday trading, with Chinese and Japanese markets closed on Friday.