Gold gains as growth concerns dent risk appetite

BENGALURU, Mar 23 (Reuters): Gold prices rose on Friday as weak economic data from the euro zone exacerbated fears of a global slowdown, weighing on risk sentiment and putting bullion on track for its best week in nearly two months.

Spot gold climbed about 0.3 per cent at $1,313.07 per ounce by 1:48 p.m. EDT (1748 GMT), while US gold futures settled 0.4 per cent higher at $1,312.3.

The metal was up nearly 1 per cent for the week, on track to mark its biggest weekly per centage gain since beginning of February.

"There is some safe demand that has surfaced," said Jim Wyckoff, senior analyst at Kitco Metals.

"The US Federal Reserve suggested US economic growth was slowing, which has spilled over into notions that the rest of the world economy might be experiencing slower growth. That was highlighted by the PMI data out of the European Union, auguring for some trepidation in the world's stock markets."

Businesses across the euro zone performed much worse than expected this month as factory activity contracted at the fastest pace in nearly six years, hurt by a big drop in demand, a survey showed.