Gold Ends Lower On Europe; Gains 1.3% For Week

(RTTNews) - Gold futures dipped slightly to end lower Friday, after closing at at a near four-month high yesterday. The precious metal dropped on some profit taking as investors cashed in on its recent strength, even as concerns persisted over developments in Europe with Portuguese bank Banco Espirito Santo struggling.

Nonetheless, gold futures gained about 1.3 percent for the week.

Renewed worries about the European economy on the back of recent weak data from France and Italy and concerns over Portugal's banking sector are supported gold.

Gold for August delivery, the most actively traded contract, gained $1.80 or 0.1 percent to close at $1,337.40 an ounce on the Comex division of the New York Mercantile Exchange on Friday.

Gold for August delivery scaled an intraday high of $1,340.40 and a low of $1,334.60 an ounce.

On Thursday, gold futures ended at a near four-month high as a sell-off in European equity markets and concerns about the financial health of Portugal's banking industry prompted traders to seek the safe haven of the yellow metal.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, edged down to 800.05 tons on Friday, from its previous close of 800.28 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 80.21 on Friday, up from its previous close of 80.12 late Thursday in North American trade. The dollar scaled a high of 80.23 intraday and a low of 80.03.

The euro traded lower against the dollar at $1.3595 on Friday, as compared to its previous close of $1.3609 late Thursday in North American trade. The euro scaled a high of $1.3624 intraday and a low of $1.3594.

In economic news, India's industrial production growth accelerated more than expected in May underpinned by strong improvement in electricity and manufacturing. Industrial production expanded 4.7 percent in May from last year, faster than the 3.4 percent increase seen in April, the Central Statistics Office reported. Economists had forecast the annual increase to rise moderately to 3.6 percent.