Gold retreats as U.S. dollar climbs

New York (Sept 26)  Gold prices pared gains on Friday as the dollar climbed after upbeat U.S. economic data, and as U.S. stocks opened slightly higher after a sharp fall.

Gold was headed for its first weekly gain in four, but barely, as the December futures contract dropped close to  $5.00  U.S. to trade at  $1,217.20  U.S. an ounce. December silver rose  seven cents  , or 0.4%, to  $17.50  U.S. an ounce.

The American dollar kept up its momentum as data showed the U.S. economy grew 4.6% in the second quarter, on an annual basis, matching the best performance since the recession ended in mid-2009. Business investment also showed strong gains, the data showed. Dollar gains have been hacking away at precious metals.

Other metals were also hit, with December palladium dropping  $3.05  to  $797.70  U.S. an ounce, and October platinum falling  $10.20  to  $1,304  U.S. an ounce.

High-grade copper for December delivery was up  one cent  at  $3.04  U.S. a pound.

Source: Baystreet Commodities