Gold rises after slide

SINGAPORE, Jan 30 (Reuters): Gold edged up on Friday, after falling more than 2 per cent to a two-week low overnight on concerns over a looming increase in U.S. interest rates, but prices were still on track for their biggest weekly drop in two months.

Other precious metals steadied after Thursday's slide, but silver extended losses after dropping as much as 7 per cent.

For the month, however, gold is set to post its biggest gain in almost a year after a recent rally fuelled by the European Central Bank's multi-billion euro bond-buying program.

Despite the threat of U.S. monetary tightening, increased liquidity through the ECB's stimulus should support gold going forward, said Victor Thianpiriya, analyst at Australia and New Zealand Banking Group.