Gold futures moved lower but stuck to a tight $10-U.S.-an-ounce range Friday as Washington negotiations aimed at resolving the so-called fiscal cliff continued to color investor sentiment.
Gold for February delivery declined $3, or 0.2%, to $1,724.20 U.S. an ounce on the Comex division of the New York Mercantile Exchange, trading between $1,720.30 and $1,731.30 U.S.
For the week, prices are down about 1.6%, and they’re trading around 0.2% higher for the month.
The precious metal had gained 0.6% on Thursday as investors focused on talks to avert the large-scale U.S. spending cuts and tax hikes, known as the fiscal cliff, that are set to kick in at the start of the year if no legislative solution is arrived at.
The Obama administration and House Republicans remained at loggerheads in fiscal-cliff talks, as the White House reportedly called for $1.6 trillion U.S. in new tax revenue and an unlimited debt ceiling on the table. House Speaker John Boehner said Thursday there has been "no substantive progress" in negotiations.
Commodities priced in dollars, including gold, have been mostly trading inversely to moves in the U.S. currency lately, as negotiations over the fiscal cliff inch along. A stronger dollar makes those commodities more expensive to holders of other currencies, while a weaker greenback makes them cheaper.
On Friday, gold prices pared losses as the dollar traded a bit lower but near Thursday’s levels. The ICE dollar index was last at 80.118, down from 80.190 late Thursday.
Deutsche Bank commodity strategists see strength ahead for gold.
Also Friday, March silver fell 22 cents to $34.23 U.S. an ounce, with the contract trading around 0.2% lower for the week, but up over 5% on the month.
March palladium lost 45 cents to trade at $687 U.S. an ounce. It’s up more than 2% for the week and poised for a more than 12% gain for the month.
January platinum fell $3.20 to $1,616.30 U.S. an ounce, trading down 0.2% for the week though up over 2% for the month.
March copper rose three cents to $3.63 U.S. a pound, however. It’s ready for weekly and monthly gains of over 2%.
