SINGAPORE, April 22 (Reuters) - Gold slipped from a five-week high and silver traded below its 11-month peak on Friday as the dollar strengthened against the euro, but the metals were headed for weekly gains buoyed by a rally commodities.
FUNDAMENTALS
* Spot gold XAU= eased 0.2 percent to $1,246.20 an ounce by 0042 GMT. Gold hit a five-week high of $1,270.10 on Thursday, but pared some gains after the dollar regained ground versus the euro.
* The euro reversed course to trade lower against the dollar on Thursday after traders saw potential for the European Central Bank to eventually increase its stimulus measures if necessary. USD/ For the week gold has gained 1 percent, largely on the back of silver's near-5-percent rally this week.
* Spot silver XAG= hit an 11-month peak of $17.695 on Thursday although it also later pared gains on dollar strength.
* Silver's rally has been spurred by a break above key chart resistance and optimism over China, where recent data has showed new debt fuelling a recovery in factory activity, investment and household spending.
* Other metals used in manufacturing have also risen on hopes of Chinese demand. Copper jumped to a four-week high, while steel soared to a 19-month top on Thursday. The 19-market Thomson Reuters Core Commodity Index .TRJCRB climbed to a 4-1/2-month high on Thursday before a sell-off.
* Among other precious metals, platinum XPT= was set to log its best week in seven with a 4 percent rise. It had climbed to a 9-1/2-month high of $1,043.72 an ounce on Thursday.
* Palladium XPD= was poised for a weekly rise of 7 percent, after climbing to its highest since November on Thursday.
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MARKET NEWS
* The euro steadied on Friday after a volatile overnight session following the European Central Bank meeting as markets were caught between the ECB's steady stance for now and expectations of further stimulus down the road.
DATA AHEAD (GMT)
0700 France Markit manufacturing flash PMI Apr
0730 Germany Markit manufacturing flash PMI Apr
0800 Euro zone Markit manufacturing flash PMI Apr
1345 U.S. Markit manufacturing flash PMI Apr
PRICES AT 0042 GMT
Metal
Last
Change Pct chg
Spot gold
1246.2
-2.26
-0.18 Spot silver
16.965 -0.033
-0.19 Spot platinum
1019.25
-1.75
-0.17 Spot palladium
606
5
0.83 Comex gold
1247.6
-2.7
-0.22 Comex silver
16.985 -0.105
-0.61
COMEX gold and silver contracts show the most active months