Gold price settles lower on profit-taking despite weaker dollar, equities

Chicago (Aug 13)  Gold futures on the COMEX division of the New York Mercantile Exchange fell Friday as investors locked in profits from gains on disappointed economic data and weaker U.S. dollar.

The most active gold contract for December delivery fell 6.8 U.S. dollars, or 0.5 percent, to settle at 1,34.2 dollars per ounce.

Boosted by weaker U.S. equities, dollar and disappointing economic data from China and the United States, the precious metal, widely seen as a safe haven asset, had rose during much of the session.

Investors started to get wary as prices failed to hold ground above the key level of 1,350 dollars.

The U.S. Dow Jones Industrial Average fell by 70 points, or 0.38 percent as of 17:00 GMT, which analysts noted was favorable to gold.

The U.S. Dollar Index, a measure of the dollar against a basket of major currencies, also fell 0.26 percent to 95.66 as of 17:00 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions.

Investors also took note of worse-than-expected the producer price index which showed that the index fell 0.4 percent in July,

Silver for September delivery fell 31.7 cents, or 1.58 percent, to close at 19.703 dollars per ounce. Platinum for October delivery dropped 27.4 dollars, or 2.37 percent, to close at 1,129.3 dollars per ounce.

Source: DailyNews