Gold Prices Rally Above $950 As Dollar Falls

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Gold prices saw notable strength on Friday, boosted by a weaker U.S. dollar. The rise pared losses seen earlier in the week.

August-stamped gold settled at $953.70 per ounce, up $18.80 on the session. Prices touched as high as $958.10 after earlier touching $932.

Gold gained $2.40 on the volatile week as uncertainty in the global markets led to mixed feelings on the need for a hedge investment. The metal rallied about 2.8% in the month of July.

The dollar tumbled versus the euro and moved within a penny of its 2009 lows. The buck also fell to a four-week low against the pound.

The U.S. Commerce Department revealed gross domestic product fell 1% in the second quarter. Economists had expected GDP to fall at a 1.5 percent pace. This follows a 6.4-percent contraction in the first quarter.

The ISM-Chicago said its index of activity in the manufacturing sector rose to 43.4 in July from 39.9 in June, with a reading below 50 indicating a contraction in the sector. Economists had been expecting the index to come in at 43.0.

Construction spending data is due at 10 a.m. ET. A drop of 0.6% for the month of June is projected, compared to a 0.9% decline in May.

ISM manufacturing data for July is due at the same time. A reading of 46.5 is expected, compared to a 44.8 for June.

(Market News Provided by RTTNews)