Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures finished higher Friday after two sessions of declines lowered prices enough to entice buyers back, and a weaker U.S. dollar greased the way for gains. Gold for December delivery rose $28.50, or 1.6%, to settle at $1,788.10 an ounce on the Comex division of the New York Mercantile Exchange. Gold had lost around $40 in a two-session losing streak. Earlier gains, however, guaranteed gold a 1.8% gain in the week. Gold was going back to its usual correlation with the dollar and continuing a more recent trend of correlating with U.S. stocks, said Michael K. Smith, with T & K Futures in Florida.

It�s also part of a market pattern that, �When things go bad everyone gets out of everything, and when things go well everyone comes in to everything,� Smith said. Pessimism, however, �has been maxed out� at least for the moment, he added. Weakness in the U.S. dollar, which makes gold less expensive for holders of other currencies, also provided some support for the metal. The dollar index, which tracks the U.S. unit against a basket of six major rivals, slipped to 77.227 from 77.660 late Thursday. Recent declines in gold in the wake of a more optimism surrounding Italy and its bonds �created a good entry opportunity for investors wishing to enter the market at an attractive level,� said Ross Norman, chief executive at London-based bullion broker Sharps Pixley, in note Friday. See full story.