Gold extended gains on Friday

Gold extended gains on Friday as bargain-hunters took advantage of a cheaper US dollar, but prices were heading for a third straight week of losses as a brightening economic outlook in the United States prompted investors to park their money elsewhere.  Gold fell to $1,655.04 an ounce in early trade before rebounding to $1,661.09 an ounce by 0633 GMT, up $3.36. The precious metal hit a low of $1,634.09 on Wednesday, its weakest since Jan. 16, on fading expectations of more monetary easing in the United States, which reduce the money available to buy safe-haven assets.  "There's little need for a safe haven at the moment," said Lynette Tan, an analyst with Phillip Futures in Singapore. "Going forward, we could see gold maintain at this level, or even fall to about $1,620. I think gold will be sidelined at the moment compared to the other risk assets."  Bullion, which was heading for its longest weekly losing streak since early October, struck a record of around $1,920 last September on fears the euro debt crisis could stall global growth.  US April gold added $2.20 an ounce to $1,661.70 an ounce. In theory, a stronger dollar makes commodities priced in the US currency more expensive for holders of other currencies.  The dollar took a breather on Friday after investors booked profits on recent gains, but dealers said the uptrend could resume after the latest US data showed further evidence supporting the view that the recovery in the world's biggest economy was becoming more self-sustaining.  "Gold still appears to be taking a hit and, if it is to escape the downward trend in the short term, it will have to overcome the price resistance at $1,726 per ounce," said Heraeus in a report. "Only then will it begin moving up again."  Dealers awaited the release of the US CFTC commitment of traders weekly data at 1930 GMT, which reflects investors' sentiment on gold. Net long futures positions held by speculators fell 20 percent in the week up to March 6, the biggest drop since August 2010.  Platinum was still at a premium to gold because of supply worries. A month-long stoppage at the world's second-largest producer Impala Platinum's  largest facility is expected to cost nearly 200,000 ounces in production and would probably cut deliveries in April by as much as half.  A quiet physical market indicated jewellers and investors appeared unsure about the future of bullion prices which have fallen about 7 percent since late February.  "The market is almost dead. Buying interest has vanished into the thin air although there's some offtake from Indonesia and Thailand. It's very very small," said a physical dealer in Singapore.  "Others are asking for cheap goods and quick delivery. The faster you deliver the gold, the better."  Among equities, the Nikkei gained for the fourth straight session on Friday, supported by buying of cyclical shares on a brightening outlook for the US economy, which offset profit-taking in exporters that have rallied recently on the softer yen.

        News Bureau,