Gold Ends Marginally Higher, Sheds 3.4% For Week

(RTTNews) - Gold futures snapped two-day loss to end marginally higher Friday, even as investors weigh the minuted from the latest U.S. Federal Reserve's policy review meet, with indicators the central bank could begin scaling down its monthly bond-buying program as early as January next year.

Nonetheless, gold found some support after Atlanta Fed President Dennis Lockhart, interacting with CNBC, kept up his dovish tone, opining that the central bank will remain accommodative "for years." His remarks follow the minutes of the most recent Fed meet, indicating policy makers are now crafting their exit from the unprecedented support measures.

Gold shed about 3.4 percent for the week, its biggest decline since September.

Gold for December delivery, the most actively traded contract, gained $0.50 to close at $1,244.10 an ounce Friday on the Comex division of the New York Mercantile Exchange.

Gold for December delivery scaled an intraday high of $1,248.30 and a low of $1,240.30 an ounce.

Yesterday, gold extended losses to settle near a four-month low, mostly on some upbeat economic data out of the U.S., and as the Federal Reserve policy review Wednesday hinted at a possible taper to its quantity easing program sooner than later. In some positive economic news from the U.S., first-time claims for unemployment benefits fell more than expected in the week ended November 16, while producer prices decreased modestly in October on a steep decline in energy prices.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, edged down to 856.71 tons from 860.31 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.75 on Friday, down from 81.01 late Thursday in North American trade. The dollar scaled a high of 81.09 intraday and a low of 80.69.

The euro traded higher against the dollar at $1.3541 on Friday, as compared to its previous close of $1.3481 late Thursday in North America. The euro scaled a high of $1.3553 intraday and a low of $1.3464.

In economic news from the eurozone, German business confidence improved more than expected in November, survey results from the Ifo Institute revealed. The headline business climate index rose to 109.3 in November from 107.4 in October. Economists had forecast an increase to 107.7. The current conditions index scored 112.2 during the month, up from 111.3 in October. The expected score was 111.5. The expectations index jumped to 106.3 from 103.7 in the previous month. This was forecast to rise to 104.

Meanwhile, German economic growth moderated in the third quarter as estimated in the preliminary report, final data from the Federal Statistical Office revealed. The seasonally and calendar-adjusted gross domestic product increased 0.3 percent quarter-on-quarter in the third quarter, matching the preliminary estimate published earlier this month. This was much weaker than a 0.7 percent growth recorded in the second quarter.