Gold Ends Higher Ahead Of Fed Meet; Up 0.5% For Week

(RTTNews) - Gold futures snapped a two-day loss to end higher Friday after recording a hefty loss yesterday, notwithstanding the prospect of a taper down by the U.S. Federal Reserve of its quantitative easing program following the policy review meet next week.

However, gold futures gained 0.5 percent for the week.

Gold for February delivery, the most actively traded contract, gained $9.70 or 0.8 percent to close at $1,234.60 an ounce Friday on the Comex division of the New York Mercantile Exchange.

Gold for February delivery scaled an intraday high of $1,238.10 and a low of $1,219.50 an ounce.

Yesterday, gold plunged over 2 percent, the worst single-day loss since October 1, 2013, over the prospect of a taper down by the U.S. Federal Reserve of its quantitative easing program. Also in focus was the agreement over the U.S. budget for the next two years which dulled the safe haven appeal of the precious metal.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 827.60 tons from 833.60 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.29 on Friday, up from 80.22 late Thursday in North American trade. The dollar scaled a high of 80.42 intraday and a low of 80.16.

The euro traded lower against the dollar at $1.3723 on Friday, as compared to its previous close of $1.3753 late Thursday in North America. The euro scaled a high of $1.3770 intraday and a low of $1.3710.

In economic news from the U.S., the Labor Department said its producer price index edged down by 0.1 percent in November following a 0.2 percent drop in October. The modest decrease was in line with economists estimate. Meanwhile, core producer prices, which exclude food and energy prices, inched up by 0.1 percent in November after rising by 0.2 percent in October. The uptick in core prices also matched expectations.

From the eurozone, Germany's wholesale prices declined for a fourth consecutive month in November, data from the Federal Statistical Office showed. The wholesale price index fell 2.2 percent year-on-year in November following a 2.7 percent decline in October. On a monthly basis, prices dropped 0.2 percent in November.

Employment in the euro area stayed unchanged for the second successive quarter in the three months to September, data from Eurostat revealed. At the end of the third quarter, the seasonally adjusted number of employed persons in the currency bloc was unchanged from the preceding three-month period. In the second quarter also there was no change in the employment level.

Elsewhere, U.K. construction output recovered in October, boosting hopes of strong recovery in the fourth quarter, the Office for National Statistics said. Construction output gained 2.2 percent month-on-month, after declining 0.5 percent in September. The growth was driven by the strength in new work, and repair and maintenance.

Meanwhile, Japan's industrial production grew 1 percent in October from the prior month, faster than the 0.5 percent rise initially estimated, final data from the Ministry of Economy, Trade and Industry showed.