Gold up on safe-haven bid, but on track for worst week since Nov

By Swati Verma

BENGALURU (Reuters) - Gold rose on Friday as investors took refuge in the safe-haven bullion as stock prices tumbled on the back of sliding oil and iron ore prices, but the yellow metal was on track for its biggest weekly decline in nearly six months.

Spot gold rose 0.5 percent to $1,233.10 per ounce as of 0746 GMT.

"Gold has rallied in Asia as traders flee to safe havens following oil and iron ores collapse in Asia today. Nervousness about Chinese growth and OPEC's next move, if any, will most likely be the front and centre issues to dominate the end of the week," said Jeffrey Halley, senior market analyst at OANDA.

Asian stocks declined on Friday as the drop in commodities raised concerns about the health of the global economy with oil prices falling more than 3 percent at one stage.

"Additionally with event risk in the shape of tonight's non-farm payrolls and Sunday's French election, traders are opting for a safety first approach into the weekend," Halley said.

U.S. gold futures were up 0.4 percent at $1,233.40 an ounce.

Gold prices edged up from a near seven-week low of $1,225.20 an ounce hit on Thursday, and is poised to end the week down about 3 percent, the biggest percentage fall since the week ending Nov. 11.

"The small rally is likely a little position squaring ahead of tonight's job report, and an overdue bounce after a few days of declines," said Jordan Eliseo, chief economist at ABC Bullion.

The markets are awaiting the April jobs report for insight into the Federal Reserve's rate trajectory through the end of the year.

A strong non-farm payrolls number would raise expectations of a rate hike in June and have a negative impact on gold, said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

Spot gold may fall to $1,209 per ounce, as it has pierced below a support at $1,229, according to Reuters technical analyst Wang Tao.

Spot silver rose 0.8 percent to $16.41, after hitting a four-month low of $16.17 in the last session. The metal was set to fall nearly 5 percent this week, its third weekly decline.

Platinum was up over 1 percent at $908.25 an ounce. The metal fell to its lowest since December on Thursday and is set to dip over 4 percent this week.

Palladium gained 0.2 percent to $805.20 an ounce and was poised for the worst week since the week of March 10.

(Reporting by Swati Verma in Bengaluru; Editing by Gopakumar Warrier and Christian Schmollinger)