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By Bloomberg

Gold extended its advance from a two-week low, trimming its biggest weekly decline since November.

Bullion for immediate delivery rose as much as 0.4 percent to $1,262.07 an ounce before trading at $1,260.47 by 2:06 p.m. in Singapore, according to Bloomberg generic pricing. Prices are heading for a 2.6 percent loss this week.

Assets in exchange-traded products backed by bullion are poised for the largest monthly increase since 2011, according to data compiled by Bloomberg, as officials in Europe and Asia adopt more stimulus to fight slowing economies. While prices fell on Thursday after U.S. jobless claims shrank to the fewest in almost 15 years, the close stayed above the 200-day average.

“Gold’s selling pressure eased after it found support near the 200-day moving average of $1,253,” James Steel, an analyst at HSBC Securities (USA) Inc., wrote in a note. “A potential break below this threshold may invite further selling.”

Holdings in gold-backed funds are set for a 4.1 percent increase in January, the first gain in six months, and stand at the highest level since October, the data show.

Unemployment claims fell by 43,000 to 265,000 in the week to Jan. 24, the least since April 2000, the Labor Department said. The Bloomberg index of consumer comfort climbed in the week to Jan. 25 to the highest level since July 2007.

Silver for immediate delivery fell 0.5 percent to $16.8730 an ounce. Prices are set for a 7.8 percent drop this week, the most since June 2013. Platinum rose 0.3 percent to $1,225.25 an ounce, trimming its weekly loss to 3.4 percent, the most since October. Palladium climbed 0.7 percent to $779 an ounce.

Gold for April delivery added 0.4 percent to $1,260.90 an ounce on the Comex in New York.