Daily Gold Update

Source: Marketwatch

New York— Gold futures fell for a second day Friday as the U.S. dollar strengthened, reducing the precious metal's appeal as an alternative investment. Gold for February delivery ended down $23.20, or 2.7%, at $837.40 an ounce on the Comex division of the New York Mercantile Exchange. Despite the loss, gold finished the week up 2.1%.

"Trading should get increasingly quiet into next week, in advance of the upcoming holidays, but rallies will remain vulnerable," said Edward Meir, a metals analyst at MF Global. The nearby December contract, which expires on Dec. 29, also dropped to end at $836.40. Open interest, or the number of outstanding contracts for December delivery, stood at 370 as of Friday, or 37,000 ounces, according to Comex data. In currencies trading, the dollar was up against most major counterparts Thursday, jumping against the euro after the European Central Bank cut its deposit rate and lifted lending rates in the wake of the U.S. Federal Reserve's easing earlier this week. See full story.