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Gold Finishes Slightly Higher After Consumer Confidence Report

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Gold recovered early losses on Friday and finished slightly higher after a disappointing consumer confidence report sent traders toward the safety value of the precious metal.

December gold closed at $1,050.70 per ounce, up 90 cents the session. Prices had dipped as low as $1,043.70 in the morning.

The Reuters/University of Michigan consumer sentiment index fell to 69.4 in October from the final September reading of 73.5. Economists had been expecting a much more modest decrease to a reading of 73.3.

Earlier, a Federal Reserve report showed that industrial production increased by 0.7 percent in September following an upwardly revised 1.2 percent increase in August. Economists had been expecting a much more modest increase in production of about 0.2 percent.

Gold finished the week up 60 cents. The metal had posted a record intraday high of $1,072 on Wednesday and record closing high of $1,065.20 on Tuesday. When adjusted for inflation, it should be noted gold moved near $2,000 in 1980.

The dollar remained mildly higher against the euro after earlier rising away from a 14-month low. The greenback also stabilized after a recent tumble against the pound.

(Market News Provided by RTTNews)

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