Comex gold futures edged higher Friday as traders balanced positions amid concern over Egypt's uncertain political situation.
The thinly traded February-delivery contract was recently up 30 cents at $1,362.20 U.S. per troy ounce on the Comex division of the New York Mercantile Exchange.
The most actively traded contract, for April delivery, was up 0.1%, or $1.10, at $1,363.60 U.S. per troy ounce.
Investor concerns about Egypt's political future buoyed gold prices Friday. Populist protests have immobilized the North African country over the past two weeks as crowds called for the end of President Hosni Mubarak's near 30-year rule.
Mubarak addressed the crowds in Cairo on Thursday, saying he would delegate authority to the vice president, but vowed to remain in power until presidential elections are held in September.
These concerns have boosted gold prices over the past two weeks, with the most actively traded contract gaining around 3.3%, or around $44 U.S. , since Jan. 27 when markets first took notice of Egypt's troubles. The yellow metal is widely seen as a store of value amid global political upheaval.
Friday's gains, however, were muted by a rising dollar which competes with gold for safe harbor investment flows. The euro was recently trading at $1.3532 U.S., down from $1.3600 U.S. late Thursday.
The uncertainty surrounding Egypt has sent many gold investors to the sidelines, with traders unwilling to place large bets on gold.
The stronger dollar also dampened interest in gold, as dollar-denominated gold futures appear more expensive to buyers using foreign currencies when the greenback strengthens.
