Gold extended gains in Asian trade Friday as its appeal as a safe haven asset soared on reports of deepening U.S. economic concerns.

Gold for immediate delivery was seen trading at $1232.18 an ounce at 12 noon Singapore time while US gold futures for December delivery was at $1,235.47 on the comex division of Nymex.

Analysts said, gold is taking cues from U.S. economic data as investor's dumped equities and fled for the safety of US treasuries and bullion.

Gold rose on Friday, holding near a 1-½ month high hit the previous day as worries about a deepening U.S. economic slowdown escalated and helped push up holdings in the ETF for the third consecutive day.

Meanwhile, the world's largest gold-backed exchange-traded fund, SPDRGold Trust said its holdings rose to 1,299.468 tones by Aug. 19 from 1,295.516 tones on Aug. 18.

On Thursday, gold rose to its highest price since July 1, rallying for a sixth day as disappointing US jobless claims data rekindled economic fears, sent stock markets lower and prompted investors to buy gold as a safe haven.

Spot gold was at $1,231.15 an ounce up from $1,227.55 late in New York on Wednesday while US gold futures for December delivery settled up $4 at $1,235.40 in thin volume.

Gold initially rose toward $1,240 an ounce, but the rally fizzled as losses in US stocks deepened, prompting some investors to sell gold to cover margin calls. The S&P 500 index dropped about 1.5 per cent.

Silver and platinum group metals fell after data showed new claims for US unemployment benefits unexpectedly climbed to a nine-month high last week, and as the Philadelphia Federal Reserve Bank said regional factory activity unexpectedly contracted in August.

Spot gold was at $1,231.15 an ounce up from $1,227.55 late in New York on Wednesday while US gold futures for December delivery settled up $4 at $1,235.40 in thin volume.

Among other precious metals, silver was at $18.28 an ounce against $18.32, platinum was at $1,524.50 an ounce versus $1,527 and palladium at $483 versus $486.50.

Concerns over the prospect of sluggish growth have raised investors' appetite for bullion as a haven from uncertainty in wider markets. This has been reflected in a rise in holdings of the world's largest gold exchange-traded fund.

Gold