Gold Shows Modest Move Back To The Downside

(RTTNews) - After moving sharply higher over the two previous sessions, the price of gold showed a modest move back to the downside during trading on Friday.

Gold for January delivery edged down $2.10 or 0.1 percent to $2,744.30 an ounce after surging by more than $30 an ounce in each of the past two days.

Despite the modest pullback on the day, the price of gold for January delivery jumped 1.3 percent for the week to earn its third consecutive weekly gain.

The slight decrease on the day may have reflected profit taking after the price of gold reached its highest levels in over two months.

An increase by the value of the U.S. dollar may also have weighed on the precious metal, with the U.S. dollar index rising 0.3 percent to 109.29.

In U.S. economic news, the Federal Reserve released a report showing industrial production increased by much more than expected in the month of December.

The Fed said industrial production jumped by 0.9 percent in December after rising by a revised 0.2 percent in November.

Economists had expected industrial production to climb by 0.3 percent compared to the 0.1 percent dip originally reported for the previous month.