Gold touches $1,300 for first time since November

Gold rose above U.S. $1,300 an ounce on Thursday for the first time in over three months, gaining almost 1 percent after disappointing U.S. retail sales data weighed on the dollar and increased bullion's appeal as a currency hedge.

U.S. retail sales dropped 0.4 percent in January, led by a drop in automobile sales, against an expected 0.2 per cent increase. Separately, initial claims for state unemployment benefits rose to a seasonally adjusted 339,000 from 331,000 the week before, and against a consensus fall to 330,000.

U.S. gold futures for April delivery ended US $5.10 higher at US $1,300.10 an ounce. Spot gold was up to US $1,300.35 an ounce, it’s highest since November 8.

U.S. gold futures for April delivery settled up $18.50 at $1,318.60 an ounce, up for an eighth straight session in the longest winning streak since July 2011. However, some traders noted that the 14 day relative strength index (RSI) for spot gold rose to about 74.

Gold has gained nearly 9 percent since the beginning of the year, after a 28 percent drop in 2013 on doubts over the U.S. economic recovery and as emerging-market turmoil weighed on some equity markets.