Gold futures wobbled Friday, under pressure from a stronger dollar, while platinum futures surged as violence escalated at a mine in South Africa.
Gold for December delivery declined $3.60, or 0.2%, to trade at $1,616.90 U.S. an ounce on the Comex division of the New York Mercantile Exchange.
Gold has managed to find some footing despite Thursday’s World Gold Council report showing a 7% drop in demand for the second quarter on lower India and Chinese demand.
Gold has been buffeted by currency markets and Friday was no exception. The euro was steady after as German Chancellor Angela Merkel voiced support for the single currency on Thursday.
Also limiting losses were prior-day news reports that Spain is readying to ask for an emergency disbursement from the €100-billion ($123-billion U.S.) bank bailout announced in June.
European Commission spokesman Olivier Bailly told reporters Thursday that no tapping of that bailout has been requested by Spain.
A weaker dollar is a positive for dollar-denominated commodities as it makes them cheaper versus other currency holders.
The ICE dollar index, which measures the currency against six rival currencies, rose to 82.659 from 83.392 in North American trade late Thursday.
Among the broader suite of metals futures, platinum for October delivery jumped $20.60, or 1.4%, to $1,455.80 U.S. an ounce, after gaining $39 U.S. the prior day.
Platinum prices surged on Thursday on news of a confrontation between South African miners working at top platinum miner Lonmin PLC and police.
Violence escalated overnight, with the death toll rising to at least 30, according to reports.
South African mines account for about 75% of platinum output.
Among other metals, silver for September delivery fell 13 cents, or 0.5%, to $28.09 U.S. an ounce.
September copper added three cents, or 1%, to $3.42 U.S. a pound.
September palladium rose $12.25, or 1.5%, to $595.65 U.S. an ounce.
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