Gold Ends Sharply Higher, Gains 2% For Week

(RTTNews) - Gold futures ended higher for a second straight session Friday, rebounding from the massive losses recorded in the previous year, even as the dollar continued to strengthen against a basket of major currencies. With the Chinese Lunar New Year holidays set to begin end January, it is anticipated gold would benefit from increased buying in the world's second largest economy.

The precious metal continued to gain with bargain hunting after suffering its worst annual performance in over twelve years in 2013.

For the week, gold futures moved up about 2 percent.

Gold for February delivery, the most actively traded contract, gained $13.40 or 1.1 percent to close at $1,225.20 an ounce Friday on the Comex division of the New York Mercantile Exchange.

Gold for February delivery scaled an intraday high of $1,239.00 and a low of $1,221.30 an ounce.

Yesterday, gold surged nearly 2 percent due mainly on some bargain hunting even though the dollar strengthened against a basket of major currencies. Some mixed macroeconomic data also contributed to the surge in gold prices, with investors viewing the precious metal a safe haven asset as global equity markets declined.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 794.62 tons from 798.22 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.76 on Friday, up from its previous close of 80.601 late Thursday in North American trade. The dollar scaled a high of 80.80 intraday and a low of 80.49.

The euro traded lower against the dollar at $1.3603 on Friday, as compared to its previous close of $1.3672 late Thursday in North America. The euro scaled a high of $1.3671 intraday and a low of $1.3594.

In economic news, eurozone broadest measure of money supply grew at a slightly faster pace in November, data from the European Central Bank showed. The annual growth rate of M3 was 1.5 percent in November compared with 1.4 percent in October. The annual growth rate of M1 stood at 6.5 percent in November.

Elsewhere, U.K. mortgage approvals increased for the ninth consecutive month in November, the Bank of England said. The number of loans approved for house purchases was 70,758 in November, up from 68,029 in October. Approvals also exceeded the 69,700 level forecast by economists.

Meanwhile, China's official non-manufacturing Purchasing Managers' Index fell to 54.6 in December from 56.0 in November due to a slowdown in the construction and service sectors, a report from the China Federation of Logistics and Purchasing showed, increasing risk aversion.