Daily Gold Update

Source:Marketwatch

San Francisco— Gold futures closed higher Friday, up more than $22 an ounce for the month, but down over 4% for the week after suffering declines for three-straight sessions. Overall strength in the U.S. dollar and recent declines in oil prices this week helped to dull investment appeal for the precious metal, which is often used as a hedge against inflation.

"Gold has had a difficult week, experiencing a sharp sell off due to profit taking, dollar strength and oil weakness," said March O'Byrne, a director at Gold and Silver Investments Ltd. "However, these would seem to be short-term phenomenon and the primary trends in oil and the dollar remain up and down, respectively, which should result in gold being well supported above $850 per ounce," he said in emailed commentary. Gold for August delivery closed at $891.50 an ounce on the New York Mercantile Exchange. It closed Thursday with a loss of more than $23 to finish at a two-week low. The contract closed out the week with a loss of 4.2%, but ended the month $22.10, or 2.5%, higher. See full story.