Gold prices inched up on COMEX on Friday but were off a six-week high hit the previous day, with investors eyeing the dollar and stocks for direction as growing recovery hopes fuel inflation concerns and boost bullion's hedge appeal. Gold prices could not hold the previous levels on MCX owing to the rise in rupee against the dollar.

Silver futures rose in line with gold. It witnessed an increase of 0.19 and 0.12 percent on MCX and COMEX respectively.

IN FOCUS:

Holdings of Julius Baer's gold-backed exchange-traded fund rose 82,000 ounces or 5 percent in the week to July 22, the bank said in its weekly statement. The amount of gold the fund holds to back its exchange-traded securities had climbed to a record 1.805 million ounces by Wednesday, from 1.723 million ounces a week before, it said.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings stood at 1,086.61 tonnes as of July 23, unchanged from the previous business day.

The dollar and euro held gains against the yen on Friday, after rising the previous day as upbeat U.S. corporate results and housing data fuelled optimism about the economy and dented safe-haven demand for the Japanese currency.

U.S. existing home sales notched their third monthly rise in June and prices hit their highest level since October, fueling hopes that the housing sector is finally on the mend and will help propel a broader economic recovery.

FUNDAMENTAL OUTLOOK:

Gold has been moving up despite weak demand. We recommend to book profits around Rs.14950-15000 levels. It seems markets have reached to a level where profit taking may come in. Silver on other hand looks strong and we recommend going long at decline of Rs.100-150.