Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as equities rallied and U.S. dollar strengthened.
The most active gold contract for December delivery went down 7.60 U.S. dollars, or 0.5 percent, to close at 1,523.60 dollars per ounce, agency reports. On Friday, the Dow Jones Industrial Average, S&P 500 and Nasdaq all rose more than one percent. When the benchmark stock indexes go up, gold futures usually fall, as investors are not necessarily looking for safe haven assets. Meanwhile, a stronger dollar added pressure to gold futures. The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, rose slightly to 98.17 ahead of gold’s settlement.
The rising dollar dented the appeal for gold, as it would make gold more expensive for investors holding other currencies. Despite the retreat of gold on Friday, the bullion posted third weekly gains in a row due to concerns about escalating trade tensions and possible
global recession. As for other precious metals, silver for September delivery was down 9.2 cents, or 0.53 percent to close at 17.122 dollars per ounce. Platinum for October delivery was up 9.5 dollars, or 1.13 percent, to settle at 851.50 dollars per ounce.