Gold futures, little changed in New York, headed for the biggest weekly loss since July, on expectations that the U.S. economy’s recovery will erode demand for the metal as a haven.
The dollar was poised for the largest weekly gain since August against a basket of six major currencies. Reports this week signaled an improving labor market and expansion in manufacturing and services. Gold advanced 30% in 2010 and rose to a record last month on concern that a rebound from a global recession would falter.
Gold futures for February delivery fell 20 cents to $1,371.50 U.S. an ounce late Friday morning on the Comex in New York. A close at that price would mark a 3.5% slide for the week, the most since July 2.
The metal fluctuated after the dollar pared earlier gains following today’s report that the U.S. added fewer jobs in December than economists forecast. The unemployment rate fell to the lowest level since May 2009.
