* Gold up more than 5 pct on week after scaling one-year
high
* Could reach $1,300 if stocks don't stop falling, analysts
* Comex gold on course for best week since 2008
(Updates prices, adds comment)
By Susan Fenton
LONDON, Feb 12 (Reuters) - Gold eased on Friday after
soaring 4 percent the previous day, but was still set for its
best week in four years, lifted by stock market turmoil that has
sent investors rushing for safe haven assets.
Spot gold XAU= was down 1 percent at $1,234.30 an ounce by
1423 GMT, but has still risen more than 5 percent this week, the
biggest weekly gain since October 2011.
"Gold could test $1,260 or even $1,300 in the next few
weeks, but I wouldn't be surprised if we also see some
profit-taking," said Commerzbank (DE:CBKG) analyst Carsten Fritsch.
Prices fell on Friday as the dollar extended gains after
better than expected U.S. retail sales data.
Prices hit a one-year high of $1,260.60 on Thursday.
The precious metal has benefited, along with bonds and the
Japanese yen JPY= , from a rush to safety as investors worry
about the health of some banks, financial instability and the
potential for global recession.
They have been unnerved since the Bank of Japan, followed by
Sweden this week, introduced negative interest rates to try to
stimulate growth.
Gold has also been boosted by a scaling back of expectations
for U.S. interest rate rises and even the possibility of rate
cuts if economic conditions deteriorate.
"The sharp repricing of risk assets lower over the past
week, has led to more outflows from credit and now equity
funds," Bank of America Merrill Lynch (N:BAC) said in a note.
"Money market, government bonds and gold funds have been the
main beneficiaries of the recent turmoil."
U.S. Federal Reserve Bank of New York President William
Dudley is due to speak at 1500 GMT on Friday and investors will
be watching for signals on the outlook for monetary policy.
Safe-haven assets have shone across the board in the past
few days as equities plunged. U.S. 10-year Treasury yields hit
their lowest since 2012 and the Japanese yen climbed to its
highest in 15 months against the dollar, while money continued
to flow into gold-backed exchange-traded funds.
U.S. gold futures GCcv1 have risen more than 7 percent for
the week, the sharpest jump since 2008.
SPDR Gold Trust GLD, the world's largest gold-backed
exchange-traded fund, said its holdings rose 1.99 percent to
716.01 tonnes on Thursday from 702.03 tonnes on Wednesday. That
was the biggest daily inflow since Dec. 18.
Total holdings of the top eight gold ETFs HLDTOTALL=XAU
have risen by 3.8 million ounces so far this year after three
straight years of decline.
Silver XAG= was down 0.4 percent at $15.68 an ounce,
slipping from the $15.95 three-month high touched on Thursday.
Platinum XPT= dipped by 0.2 percent at $958 an ounce after
reaching its highest since November on Thursday. Palladium
XPD= was up 0.4 percent at $523.50.