Gold down ahead of U.S. holiday weekend

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as the U.S. dollar strengthened, despite no major economic data being released.

The most active gold contract for March delivery fell 2.5 U.S. dollars, or 0.2 percent, to settle at 1,239.10 dollars per ounce.

It was a light trading day and volume was extremely thin on Friday as the U.S. holiday weekend has begun. Gold was put under pressure as the U.S. Dollar Index rose by 0.39 percent to 100.89 as of 1820 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.

The precious metal was prevented from falling further as the U.S Dow Jones Industrial Average fell by 49.58 points, or 0.24 percent as of 1820 GMT. 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.

Traders are looking to next week for a shortened trading week as the markets are closed on Monday for the U.S. Presidents Day holiday. The PMI marketing flash is due on Tuesday, existing home sales report and minutes from the February Federal Open Market Committee meeting are due on Wednesday, weekly jobless claims are due on Thursday, and new home sales are due on Friday.

Silver for March delivery fell 4.4 cents, or 0.24 percent, to close at 18.03 dollars per ounce.

Platinum for April delivery dropped 9.7 dollars, or 0.96 percent, to close at 1,006.00 dollars per ounce. Endit