Gold futures fluctuated between small gains and losses Friday, as higher stocks and crude-oil futures offered support but a rising U.S. dollar kept the metal unable to move past $1,700 U.S. an ounce.
Gold for December delivery retreated 60 cents to trade at $1,695.30 U.S. an ounce on the Comex division of the New York Mercantile Exchange.
It had spent Asian and European trading hours firmly in the red. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, rose to 79.369 from 79.099 in late North American trading Wednesday.
Dollar strength is a negative for dollar-denominated commodities such as gold, as it makes them more expensive for holders of other currencies.
U.S. stocks opened lower but reversed higher in minutes even as they are on track for one of the worst Thanksgiving weeks in recent memory.
Gold has behaved more like a risk asset in recent sessions, failing to benefit from safe-haven fund flows as investors grow more nervous about the wider economic picture.
Italy sold short-term bonds on Friday only to see its yields nearly double as investors are still worried about the euro-zone’s sovereign-debt crisis and its ramifications for the global economy.
One analyst cautioned that gold prices could potentially ease back to the $1,650-U.S.-per-ounce level, if global markets face a liquidity squeeze that prompts further liquidation and margin selling.
Copper tracked gold higher, but silver and platinum stayed in the red. December copper rose two cents, or 0.7%, to $3.30 U.S. a pound.
December silver retreated 28 cents, or 0.9%, to $31.60 U.S. an ounce. January platinum lost $16.30, or 1.1%, to $1,541.50 U.S. an ounce.
