Gold near two-week high on softer equities

Gold was trading near its two-week high on Friday, holding on to sharp gains from the previous session as weaker equities spurred demand for the metal seen as a safe-haven asset.

Spot gold was unchanged at $1,224.65 an ounce by 0025 GMT. It climbed 1.6 percent on Thursday and hit a two-week peak of $1,230.65 as sharp losses in equities prompted funds to buy bullion on the first trading day of the new year.

Silver was also trading near its highest in two weeks after gaining 3.5 percent in the previous session.

Gold's gains come after it lost 28 percent in 2013, ending a 12-year bull run and posting its largest loss in 32 years, as the U.S. Federal Reserve announced plans to unwind its monetary stimulus.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 3.60 tonnes to 794.62 tonnes on Thursday.

Asian markets were on the defensive on Friday after a sudden reversal in some very popular, and thus crowded, trades sparked a bout of global risk aversion.

Copyright: Thomson Reuters 2014