Gold futures build on gains as dollar falls back
By Nick Godt
Gold futures finished the session up almost 1% Friday, and gained almost 2% on the week, receiving a lift as the dollar weakened and on news that Vietnam lifted a ban on imports of the precious metal.
The dollar came under renewed pressure Friday as upbeat earnings news from Walt Disney Co. helped offset a weak reading on U.S. consumer sentiment, lifting stocks on Wall Street.
Gold for December delivery rose $10.10, or 0.9%, to end at $1,116.70 an ounce on the New York Mercantile Exchange.
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The contract gained nearly 2% for the week.
Gold earlier slipped below $1,105 an ounce on the heels of the Reuters/University of Michigan index, which showed consumer sentiment earlier this month fell to 66.0, missing expectations for a rise to 71.8. The index has now fallen for two months. Read more on consumer sentiment.
But investor sentiment on Wall Street remained buoyed by an upbeat earnings report from Walt Disney Co. (NYSE:DIS) . Read more about U.S. stocks.
The U.S. dollar index (INDEX:DXY) fell 0.5% to 75.20.
A weaker dollar increases the perceived value of hard assets such as bullion. The dollar has in recent months tended to fall on good economic news and gain when times look bleak. Read more on the dollar.
On Thursday, the December gold contract fell $8 an ounce to post its first loss this month, as the U.S. dollar edged higher.
Gold's earlier gains were helped by news that Vietnam has lifted its ban on imports of the precious metal, according to analysts at GoldCore.
This "will add fresh impetus and demand into a historically pro-gold region," they wrote in a note. With a volatile dollar, "gold should hold above the $1,000 an ounce level, gather fresh investors and continue its bull run."
Gold had been given a lift after the dollar sank as government data showed the U.S. trade deficit widened more than expected, to $36.5 billion in September, and that import prices rose 0.7% last month. See more on the U.S. trade gap.
Among other metals, December silver rose 12 cents, or 0.7%, to $17.38 an ounce, while January platinum gained $25.50 an ounce, or 1.9%, to $1,385.50 an ounce. Read more on silver.
December copper was up 2 cents, or 0.8%, to $2.97 a pound.
Holdings in SPDR Gold shares (NYSE:GLD) , the biggest gold exchange-traded fund, stood at 1,114.44 metric tons, unchanged from the prior three sessions but the highest level since early July.
