Gold drops as dollar firms, equities retreat

Gold drops as dollar firms, equities retreat

Gold futures on the COMEX Division of the New York Mercantile Exchange lost 0.5 percent Friday, pressured by the newly-gained strength in U.S. dollar, weakness in stocks market and investors' profit-taking.

The most active gold contract for December delivery dropped 9 dollars, or 0.5 percent, to 1,756.1 dollars per ounce.

A trader said equity and other risk assets dropped on Friday, as many investors are reluctant to take risks ahead of Friday's confidence vote in Greek government after a week of dramatic developments in the debt-beleaguered nation.

Dollar regained some steam on Friday as investors feared that further turmoil in Greece could jeopardize Europe's plans for containing its quickly spreading debt crisis. The greenback also gained some support after a U.S. Labor Department report showed the U.S. economy added 80,000 jobs in October, short of expectations for a gain of 100,000.

The stronger dollar has weighed on the dollar-denominated precious metal by making it pricier for investors and traders holding other currencies. And the bullion's earlier rally also attracted some investors to book in some profit before weekend, but the precious metal managed to close the week with a gain of 0. 5 percent.

"The Gold market has rallied this week as traders and investors are choosing the precious metals as their 'safe haven' alternative investment," said Mike Daly, gold specialist with PFGbest here in Chicago.

"This week it seemed like the news from the Euro Region was changing minute to minute. Rumors flied adding to the global investor uncertainty. During times of economic chaos the precious metals historically have retained their value better than most other commodities," Daly added.

Silver for December delivery pared 41.4 cents, or 1.2 percent, to 34.084 dollars per ounce. Platinum for January delivery softened 17.7 dollars, or 1.1 percent, to 1,629.3 dollars per ounce.

Editor: yan

English.news.cn   2011-11-05 03:56:33 FeedbackPrintRSS
CHICAGO, Nov. 4 (Xinhua)