Spot gold held steady Friday, on course for its biggest weekly rise in 33 months, after the euro zone's last-minute deal on containing the debt crisis cheered investors, but a rebound in the dollar may weigh on prices.

Gold rallied with global stocks and other commodities, after a European Union summit agreed on a 50-percent haircut on Greek bonds, bank recapitalisation and leveraging of the bloc's rescue fund.

Although Europe's problems will not go away overnight, investors are now able to shift their focus to other pressing concerns.

Focus will shift to U.S. economy after recent data painted a mixed picture, said Hou Xinqiang, an analyst at Jinrui Futures in China.

Investors will also pay attention to if China would loosen up its monetary policy, which would be bullish for commodities.

Many market watchers expect China's central bank to begin to loosen up its tight liquidity policy by the end of the year, as China's economic growth slows and hopes run high that inflation has peaked.

Spot gold hit a one-month high of $1,751.99 an ounce, before retreating to $1,743.69 by 0322 GMT. It was headed for a rise of 6.3 percent from a week earlier, the biggest weekly rise since January 2009.

U.S. gold edged down 0.1 percent to $1,745.70, on course for its sharpest one-week climb since December 2008 with a 6.7-percent gain.

Technical analysis suggested that spot gold could rise into a resistance range of $1,762 and $1,773 during the day, before starting a deep correction, Reuters market analyst Wang Tao said.

The dollar index <.DXY> edged up, after suffering its biggest one-day loss in more than two years on Thursday. A stronger dollar makes commodities priced in the greenback more expensive for holders of other currencies.

Holdings of the SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, edged down 0.6 tonnes from a day earlier to 1,243.551 tonnes by Oct 27, but still up 16 tonnes from a week earlier, as gold prices climbed.

Recent data out of the United States showed that the world's biggest economy grew at its fastest pace in a year in the third quarter but consumer confidence in October dropped to a 2-1/2-year low.

With the world's biggest economy seeming to have stepped back from the edge of the cliff, investors expect little policy shift out of the Federal Reserve's policy meeting on Nov. 1-2.

Gold's appeal will remain, even as the risk of a full-blown banking crisis in Europe has been reduced, since the global economic outlook remains uncertain, analysts said.

Spot silver gained 0.4 percent to $35.19, on course for a weekly gain of more than 12 percent, its sharpest since September 2008.

Spot platinum rose 1.2 percent to $1,651, headed for its biggest weekly gain since May 2008 with a more than 9 percent climb this week.

(Editing by Himani Sarkar)

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