Gold Futures Rise for Fifth Straight Day

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"Many traders are likely looking for gold to reach new record highs prior to 'selling on the news' and taking profits"

Gold futures rose slightly on Friday, advancing for a fifth straight session, after swinging between gains and losses due to a stronger dollar and with high volatility brought about in markets by the expiration of equities futures and options contracts.

Gold for December delivery, the most actively traded contract, rose 20 cents to $1,013.70 an ounce.

Gold remains up 0.7% on a week during which upbeat economic data encouraged more investors to take risks, sending the dollar to its weakest levels of the year. December gold hit an 18-month high at $1,013.50 an ounce on Thursday.

The thinly traded September contract, meanwhile, fell 30 cents, or 0.03%, to $1,012 an ounce.

The SPDR Gold Trust, the biggest gold exchange-traded fund, fell 0.5%.

After slumping to its lows of the year this week, the dollar gained ground on Friday, lifted by apparent short covering as traders booked profits ahead of next week's meeting of U.S. Federal Reserve policy makers.

The dollar index, which measures the greenback against a trade-weighted basket of major currencies, stood at 76.414, compared with 76.190 at the end of New York trade on Thursday.

Gold open interest, or contracts to buy or sell gold that have not been closed, rose another 3,764 contracts to 478,172 on the Comex, suggesting that the gold rally has further room to run, according to GoldCore analysts.

"Many traders are likely looking for gold to reach new record highs prior to 'selling on the news' and taking profits," they wrote.

Among other metals, silver for December delivery lost 12 cents, or 0.7%, to at $17.15 an ounce. October platinum fell $4.0, or 0.3%, to $1,345.50 an ounce, while December palladium added $1.80, or 0.6%, to $307.55 an ounce.

Copper for December delivery fell 9 cents, or 3%, to $2.81 a pound.

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