Gold set for third weekly drop

Singapore - Gold held above a five-week low on Friday amid a weaker dollar and uncertainty over debt-laden Greece, but the safe-haven metal was set to close down for a third straight week on expectations of higher US interest rates.

Spot gold had climbed 0.4% to $1 227 an ounce by 05:23. The metal hit a five-week low of $1 216.45 in the previous session, before recovering to close up 0.3%.

"Support for gold was well pronounced around the 100-day moving average of $1 216 and this level should hold over the short term as we await Monday's renewed Greek debt negotiations," said MKS Group trader Sam Laughlin, adding that the next level of support was at $1 200.