Gold futures on the COMEX Division of the New York Mercantile Exchange regained some ground on Friday, as recent sharp correction encouraged investors to build up their holdings of safe assets before the weekend.
The most active gold contract for December delivery added 5 dollars, or 0.3 percent, to 1,622.3 dollars per ounce.
Some investors have taken advantage of gold's sharply decline, said a trader, as its price has dropped 12 percent this month, their worst performance since October 2008.
Meanwhile, the dollar index, which measures the U.S. unit against a basket of major currencies, rose to 78.412 from 77.917 late Thursday. The newly-gained strength in the greenback has eroded gold's shine as an alternative asset, as it made dollar- denominated gold more expensive for buyers who hold foreign currencies.
Market analysts noted that gold's future would remain uncertain in the short term. On one hand, any financial disaster in eurozone like a Greek default or bank failure would prompt investors to rush for cash and Treasuries, which could weigh on the dollar- denominated commodities, increasing liquidation in gold market if equities drops.
On the other hand, any positive signs from the debt-beleaguered eurozone will cheer up investors, and money will flow out of gold into stocks and other asset classes as fear vanishes.
Silver for December delivery lost 43.9 cents, or 1.4 percent, to 30.083 dollars per ounce. Platinum for January delivery pared 9. 3 dollars, or 0.6 percent, to 1,523.6 dollars per ounce.
