Gold ticked up on Friday, on course for a second weekly rise in three, as the euro firmed on news of progress in Greece's bailout talks while concerns about US fiscal issues continued to lend support to bullion. Bullion is getting additional support from worries about the US "fiscal cliff" - $600 billion in tax hikes and spending cuts scheduled to kick in early next year, which may push the economy into another recession.
Spot gold edged up 0.1 percent to $1,731.36 an ounce by 0808 GMT, headed for a weekly gain of 1 percent. US gold gained 0.2 percent to $1,731.60. Technical analysis suggested that spot gold looks weak below resistance at $1,734 and may retrace to $1,720 an ounce, said Reuters market analyst Wang Tao.
Physical market in Hong Kong and Singapore was quiet, as the rangebound prices put off interest from both buyers and scrap sellers, dealers said. "Physical demand is very slow, especially from the jewellery sector, for this time of the year," said Dick Poon, general manager of Heraeus Metals Hong Kong Ltd. Spot silver rose to $33.49, its highest since mid-October, headed for a weekly rise of about 4 percent.