Gold futures on the COMEX Division of the New York Mercantile Exchange ended the three-session winning streak and edged lower on Friday, dented by the strength in U.S. dollar, some short- term profit taking as well as increasing market concerns over a potential euro-zone credit rating downgrades.
The most active gold contract for February delivery dipped 16.9 dollars, or 1 percent, to 1,630.8 dollars per ounce.
The euro on Friday dropped to its lowest level against the U.S. dollar in nearly 17 months, after a senior euro zone government source said Standard & Poor's will downgrade the ratings of euro zone countries, which was later confirmed by French Finance Minister Francois Baroin.
The dollar index, which tracks the U.S. unit against a basket of six major rivals, reversed Thursday's losses and moved sharply higher.
Gold lost some momentum on Friday, pressured by the newly gained strength in U.S. dollar, as a stronger dollar usually makes gold more expensive for holders of other currencies, traders said.
Meanwhile, profit taking after recent gains sparked selling pressure in gold market, as debt fears re-emerged. The precious metal has climbed about 5 percent since the first session of the New Year.
Silver for March delivery trimmed 60.2 cents, or 2 percent, to 29.522 dollars per ounce. Platinum for April delivery lost 11.3 dollars, or 0.8 percent, to 1,488.8 dollars per ounce. |