* Spot gold down 0.4 pct so far this week
* SPDR Gold holdings down 1 pct for the week
* Gold in euros climbs to highest since May 2017
* EU slashes euro zone growth outlook
By K. Sathya Narayanan
Feb 8 (Reuters) - Gold firmed on Friday, holding above the key
$1,300 level on concerns over economic growth in Europe and elsewhere,
but headed for its first weekly loss in three as the dollar
strengthened against the euro.
Spot gold was up 0.2 percent at $1,312.67 per ounce at 1237
GMT, after hitting its lowest since Jan. 29 at $1,302.11 on Thursday.
U.S. gold futures were also up 0.2 percent at $1,316.30.
However, while bullion has risen about 13 percent since touching
over 1-1/2-year lows in August, mostly due to volatile stock markets
and a dovish U.S. Federal Reserve, a strong dollar has driven gold
down about 0.4 percent so far this week.
Data pointing to an economic slowdown in Europe has weighed on the
euro. The resulting dollar strength has pressured gold even as
economic concerns supported interest in the metal as a haven from
"The major headwind is the pretty resilient dollar at the
moment," said Philip Newman, director at Metals Focus.
"There are quite a few concerns - economically, financially
and politically - and yesterday, there was a downgrade in (the)
European growth (forecast)."
The dollar index , which tracks the greenback against major
currencies, was on course for its first weekly gain in three and was
trading close to a two-week high.
Against the euro , the dollar was set for its biggest weekly
rise in four months. Gold denominated in euros hit its highest
since May 2017, at 1,157.80 euros per ounce.
On Thursday, the European Commission cut its forecasts for euro
zone economic growth this year and next, citing global trade tensions
and China's slowdown as the main drags on the European Union's
Worries about a global slowdown and the lack of any sign of a
resolution to the U.S.-China trade row dragged global shares down for
a third day.
Meanwhile, holdings in the world's largest gold-backed
exchange-traded fund, the SPDR Gold Trust , have fallen over 1
percent for the week in what could be their worst fall since the week
ended Oct. 7.
"We see no reason for the outflows in view of the falling
stock markets and declining bond yields, however. We believe gold
should be in good demand as an attractive alternative investment and a
safe haven, partly because there are after all numerous political
risks," Commerzbank said in a note.
Among other precious metals, palladium rose 0.9 percent to
$1,398 an ounce.
Spot silver gained 0.2 percent to $15.74, while platinum
inched down 0.1 percent to $794.89 per ounce.
(Reporting by K. Sathya Narayanan in Bengaluru; Editing by Kevin
Liffey and Jan Harvey)
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