Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures settled lower Friday after macroeconomic indicators suggested an improved economic picture and U.S. Federal Reserve Chairman Ben Bernanke called for cautious monetary easing. The U.S. dollar also saw a bounce-back on Friday following a three-day decline. Gold for December delivery settled down $5.60, or 0.4%, to $1,372.00 an ounce on the Comex division of the New York Mercantile Exchange. It spiked to an intraday high of $1,386.40 just before floor trading opened, but retreated after the morning data.

Gold closed at a record high Thursday, settling at $1,377.60, its 17th record in little more than five weeks. For the week, prices remain up 2%. Expectations of quantitative easing have weakened the dollar and pushed investors to gold as a means of protecting their wealth. On Friday, Bernanke recognized the need for further action but urged caution to make use of the new policy tool. The U.S. dollar index, which tracks the greenback against a basket of six other currencies, rose 0.4%. See full story.