Gold continues to shine...but softens from new record

Gold futures in New York pulled back after reaching a record US$1,366 an ounce, its biggest drop in more than two months, as the dollar strengthened and some investors sold after the bullion’s sensational rally. Gold futures for December delivery lost US$4.60, or 0.3%, to US$1,330.40 an ounce at 8 a.m. on the Comex in New York. The metal is up 1% this week. Bullion for immediate delivery in London was 0.3% lower at US$1,329.57 after reaching a record US$1,364.77 yesterday.



Silver for December delivery in New York lost 0.3% to US$22.515 an ounce, cutting its gain to 2.1% this week. The metal yesterday reached a 30-year high of US$23.53.

Exchange-traded funds that invest in gold and silver rebounded in pre-market trading on Friday after the September non-farm payrolls report showed deeper-than-expected job losses. SPDR Gold Shares was up 0.7% as more than 1 million shares traded, according to FactSet Research. The iShares Silver Trust added 1.4%.

The dollar rebounded from near the lowest level since January against the euro. It traded near the lowest level since 1995 against the yen on concern that the Federal Reserve will step up asset purchases in order to accelerate growth, undermining the US currency.