(Updates with U.S. markets close, fresh commentary)
* U.S. stocks post biggest weekly percentage drops since March 20
* Risky currencies recover as traders stop taking profits
* Gold on track for biggest weekly gain since April
* Graphic: World stocks market cap loss https://tmsnrt.rs/30zdOIL
By Elizabeth Dilts Marshall
NEW YORK, June 12 (Reuters) - Global equity markets rose in choppy trading on Friday as concerns triggered by the U.S. Federal Reserve's less-than-optimistic outlook for an economic recovery and a jump in U.S. coronavirus cases gave investors pause.
The three major U.S. stock indexes rose by at least 1%, a day after the market's worst single-day drop in three months. MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.34%.
Spot gold prices rose as investors bought the safe-haven metal, with bullion heading toward its biggest gain since the week of April 10. GOL/ Meanwhile, oil prices fell for the first time in seven weeks. O/R gold XAU= added 0.3% to $1,731.81 an ounce. U.S. gold futures GCv1 settled down 0.1% at $1,737.30.
Rich Meckler, partner at New Jersey-based Cherry Lane Investments, said Friday's upswing indicated some investors are returning the markets, despite broad uncertainties about the economic recovery and future of the coronavirus pandemic.
"You could make the case that next year this time everything is back to normal, and you can make the case that it's multiple years before we get back on path, and that's what investors have been fighting," over the past few days, Meckler said.
Worldwide health officials expressed concerns this week that countries, grappling with the devastating economic impact of lockdowns meant to stem coronavirus's spread, are lifting restrictions too swiftly and risking a resurgence in cases. this week, the Fed predicted a 6.5% decline in U.S. output this year and said an economic recovery is some time off. Dow Jones Industrial Average .DJI rose 477.37 points, or 1.9%, to 25,605.54, the S&P 500 .SPX gained 39.21 points, or 1.31%, to 3,041.31 and the Nasdaq Composite .IXIC added 96.08 points, or 1.01%, to 9,588.81.
Despite that, all three major indexes suffered their biggest weekly percentage declines since the week ended March 20. Europe, the STOXX 600 Index .STOXX snapped a four-day losing streak to rise 0.28%. Frankfurt's DAX .GDAXI , Paris's CAC40 .FCHI and London's FTSE .FTSE were all in positive territory, the latter shrugging off data showing Britain's economy shrank the most on record in April.
Spot gold XAU= rose 0.2% to $1,730.19 per ounce by 4:48 p.m. EDT (1810 GMT), up about 2.7% so this week. crude CLc1 oil futures settled at $36.26 a barrel, down 8 cents or 0.22 percent. Brent crude futures settled at $38.73 a barrel, up 18 cents or 0.47%. O/R
The three major U.S. stock indexes posted their worst day on Thursday since mid-March, when markets were sent into free-fall by the abrupt economic lockdowns put in place to contain the pandemic. currencies, the pound shed early gains against the dollar after 10 consecutive days of gains. Sterling GBP= was last trading at $1.2519, down 0.64%. The dollar index =USD rose 0.286%. euro EUR= down 0.39% to $1.1253. Treasury yields rose as stocks clawed back some ground. The 10-year U.S. Treasury yield US10YT=RR rose to 0.7067%.
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