Gold futures turned down Friday as the dollar moved a little higher

Gold futures turned down Friday as the dollar moved a little higher after a pair of U.S. economic reports came in mixed.

Gold for February delivery slipped $1 to $1,609.60 an ounce.

Other metals futures, for March delivery, managed to hold the line on gains.

Silver  rose 1% to $29.34 an ounce.

Palladium  added 0.6% to $658.45 an ounce.

March copper futures stayed up 1.7% to $3.47 a pound.

Platinum for January delivery   added 0.5% to $1,430.90 an ounce.

The small decline in gold prices came as the dollar turned up.

The greenback recovered after the Commerce Department said U.S. orders for durable goods rose 3.8% in November, more than many economists expected.

Personal spending rose 0.1% last month, a little less than forecast.

Analysts also noted that volatility may be higher because of very thin trading volume, exaggerating moves that might otherwise be of minimal significance.

Still, analysts say gold has another shot at reaching $2,000 an ounce next year.

Gold declined Thursday, extending a loss from the previous session.

James Steel, bullion analyst at HSBC, noted that end-of-the-year portfolio adjustment by funds may have contributed to the recent declines in the precious metal. Moreover, a further decline in gold holdings by exchange-traded funds may add downward pressure to prices, he said.

However, recent action by the European Central Bank to provide a massive amount of loans to euro-area banks at cheap rates would prevent liquidity shortages and may be supportive of the euro, in turn likely aiding gold prices.

Expectations that China’s central bank may pursue a more accommodative monetary policy was also supportive of demand for gold, Steel said.  - MarketWatch

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Posted by admin on Dec 23 2011. Filed under Gold price. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry