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Gold Slips Near $1,700

11/16/2012 7:03 AM ET

The price of gold was extending losses Friday morning as downbeat euro zone macroeconomic data hurt the euro and stocks.

Gold for December delivery, the most actively traded contract, shed $7.30 to $1,706.50 an ounce. Yesterday, gold settled at a two-week low on a World Gold Council report that projected weak demand for the precious metal in the third quarter. Global demand for the precious metal slipped due mainly to a significant drop in Chinese consumption during the September quarter. Meanwhile, investors largely ignored a slew of other macroeconomic data out of the U.S. and Europe

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved up to 1,339.62 tons from 1,336.30 tons.

Meanwhile, the U.S. dollar was steady around its 2-month high versus the euro and sterling. The buck was hovering around its 7-month high versus the yen, while ticking higher against the Swiss franc.

In economic news, the euro zone trade surplus increased to EUR 9.8 billion in September, Eurostat reported. The surplus totaled EUR 5.2 billion in August and EUR 1.7 billion in September 2011. On a seasonally adjusted basis, exports dropped 1.1 percent in September month-on-month, partially offsetting a 3.3 percent rise in August. Likewise, imports slipped 2.7 percent after increasing 2.3 percent.

Meanwhile, the euro area current account surplus declined to EUR 0.8 billion in September from EUR 10.9 billion in August, the European Central Bank said.

The prices of silver and platinum were ticking lower in morning deals.

by RTT Staff Writer

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