Gold climbed for a sixth straight session on Friday, as more data pointed to a slower U.S. recovery, opening the door wider for the Federal Reserve to ease further, which would help burnish gold's appeal as an inflation hedge.

 

Bullion has also seen some safe-haven inflows in recent days due to the rising risk of financial market turmoil in the event of a messy Greek exit from the euro zone bloc.

 

Many investors were on the sidelines ahead of Greece's vote on Sunday that could determine its future in the bloc.Authorities in the world's major economies are preparing for a possible market storm or public panic after the elections should radical leftists win.

 

"It probably won't be a catastrophic weekend, though from a risk/reward perspective I think people are steering clear of markets where they can," said a Singapore-based trader.

 

Spot gold rose 0.2 percent to $1,624.86 an ounce by 0632 GMT and has put on some 2 percent over the past six sessions, its longest winning streak since August. The U.S. gold futures contract for August delivery gained 0.4 percent to $1,626.New claims for U.S. state jobless benefits rose for the fifth time in six weeks and consumer prices fell in May, data showed.

 

 

Spanish benchmark bond yields rose above the dangerous 7 percent level on Thursday, while Italy's bond auction on Thursday met with better-than-expected demand though borrowing costs rose sharply.

 

"The more pressing issue is the bigger economies that really matter -- Spain and Italy, which have serious problems that are reflected in bond market yields," said Dominic Schnider, an analyst at UBS Wealth Management in Singapore.

 

"The high yields indicate we need to see dramatic reforms,and here the big risks lie."Spot platinum rose to a one-month high of $1,498.5,breaching its 50-day moving average at around $1,495. The metaltraded up 0.4 percent at $1,491.99, headed for a weekly rise of almost 5 percent.

 

The gold-platinum spread stood near its 2-1/2-week low, at $133.20 an ounce, down 30 percent from a five-month high above $190 hit this month.

Spot palladium hit $639.25, its highest since early May. It was up 1.2 percent at $637.72, poised for a 4.8 percent climb on the week. Platinum group metals got a lift from data showing stronggrowth in China's car sales in May.