CHICAGO, Jan. 15 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose Friday as the U.S. dollar and U.S. equities showed weakness.
The most active gold contract for February delivery went up 17.1 U.S. dollars, or 1.59 percent, to settle at 1,090.70 dollars per ounce.
However, gold futures still shed 0.66 percent for the week.
Gold was given support as U.S. equities have entered correction territory. The U.S. Dow Jones Industrial Average fell by 2.56 percent Friday. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.
The U.S. Dollar Index fell by 0.21 to 98.87 as of 1920 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.
A report released by the U.S. Department of Commerce Friday showed U.S. retail sales declining by 0.1 percent in December. Analysts note that this added additional support to gold but put pressure on U.S. equities. The precious metal was given further support as a separate report released by the Department of Commerce showed industrial production falling by a worse-than-expected 0.4 percent.
Gold was given additional support as a report released by the U.S. Department of Labor on Friday showed the producer price index falling by 0.2 percent. Analysts note that this is a sign of low inflation, which is one of the criteria that the U.S. Federal Reserve uses when deciding when to raise interest rates.
Analysts say the long-term trend for gold remains strongly bearish as the Fed began the first of its interest rate hikes in December, despite expectations for a delay until 2016.
Silver for March delivery rose 14.8 cents, or 1.08 percent, to close at 13.896 dollars per ounce. Platinum for April delivery dropped 7.3 dollars, or 0.87 percent, to close at 827.50 dollars per ounce.
