Gold Prices Fuzzy on Dollar


"Investors await meeting of G20 finance ministers, central bank governors in Korea this weekend."

Gold prices were exhibiting lackluster action Friday morning as investors braced for more clarity on the direction of the U.S. dollar, closely monitoring news out of the G20 finance ministers and central bank governors meeting in Korea this weekend.

Gold for December delivery was down 20 cents to $1,325.40 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Friday has traded as high $1,328.80 and as low as $1,315.60.

The U.S. dollar index was flat at $77.40 while the euro was up 0.9% to $1.41 against the dollar. The spot gold price was down $2.50, according to Kitco's gold index.

EverBank World Markets' assistant vice president Mike Meyer echoed the thoughts of many investors when he said, "I just don't understand how proclamations of a strong dollar, or at least one that isn't weakening, can even be discussed at a time when the Fed is talking about adding quantitative easing."

On Thursday, gold prices were falling as the jobs report came out better than expected, a number of positive earnings reports emerged and the broader stock indices rose. Stocks had ended higher in a volatile trading session.

"With risk appetite and investor confidence showing signs of returning, there is the risk of further profit taking in both gold and silver; however with background dollar weakness lurking, investor concerns about the long-term inflationary implications of QE (quantitative easing) and physical demand at its seasonally strongest, we expect dips to remain well supported and viewed as a buying opportunity," research analyst James Moore said in a daily report.

Silver prices were up 7 cents to $23.21, while copper was flat at $3.79.

Gold mining stocks, a risky but profitable way to buy gold were trading in mixed territory Friday morning.

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