Gold inched down in thin trade on Friday after rising slightly in the previous session, but investors were still hopeful that main consumer China could move to stimulate growth after factory activity slowed unexpectedly in July.
Fundamentals
* Gold fell $1.03 an ounce to $1,616.06 by 0025 GMT, but was heading for its second weekly rise in three. Gold held below a record around $1,920 hit in September last year and had failed to revisit recent highs on uncertainty about any monetary action the Federal Reserve and European Central Bank may take.
* US gold for December eased $1.50 an ounce to $1,618.70 an ounce.
* Data from China showed annual consumer inflation hit a 30-month low last month and industrial output grew at its slowest pace in about three years. Markets saw that as a sign that officials would do more to stimulate the economy, which has been losing momentum since the start of last year.
* Holdings of the largest silver-backed exchange-traded-fund (ETF), New York's iShares Silver Trust SLV and that of the largest gold-backed ETF, New York's SPDR Gold Trust GLD, remained unchanged from Wednesday to Thursday.
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Market news
* Japan's Nikkei share average dropped at Friday's open on a lack of fresh positive catalysts after a four-day rally spurred by hopes for global stimulus and as the end of a disappointing earnings season shifted focus to economic indicators.
* The euro steadied in Asia on Friday, as hopes for progress in Europe's debt crisis gained the upper hand over worries about slowing euro zone growth.