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Gold Prices Decline Modestly On Lower Hedge Appeal

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Gold finished modestly lower amid choppy trading on Friday but held above the $1,050 mark. The precious metal's hedge value was weakened as the dollar recovered some recent losses.

December-stamped gold prices dropped to $1,056.40 per ounce, down $2.20 for the session. Prices hit as low as $1,050.40 after earlier reaching as high as $1,068.80.

Prices gained $3.80 for the week, rising for the fourth consecutive week. Earlier this month, gold hit a record $1,072, before factoring in inflation.

The dollar pared some of its recent losses against the euro and hovered right at the $1.50 mark. The greenback also surged against the pound amid the release of gross domestic product data that revealed the British economy failed to exit recession in the third quarter.

A National Association of Realtors report showed that existing home sales jumped 9.4 percent to an annual rate of 5.57 million units in September from a 5.10 million unit rate in August. Economists had been expecting a more modest increase to a 5.35 million unit rate.

There is no major economic data on the calendar on Monday's calendar, leaving traders to focus on earnings reports from Verizon and RadioShack. Tuesday will bring the S&P Case-Shiller home price index as well as the release of a consumer confidence report.

(Market News Provided by RTTNews)

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