Gold up on technical trading, weaker US dollar

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Friday as technical trading caused a bounce in the price of the precious metal and the U.S. Dollar also fell.

The most active gold contract for June delivery rose 8.1 U.S. dollars, or 0.66 percent, to settle at 1,234.60 dollars per ounce.

After a declining three days in a row, the precious metal rose on Friday as it hit a key support level and rebounded off of it. Analysts believe that the increase is only temporary, as technical trading is usually outweighed by fundamentals.

The precious metal was given additional support as a report released by the U.S. Federal Reserve on Friday showed industrial production falling by much more than expected, by 0.6 percent. Analysts note a large decline in vehicle production as vehicle sales have also dipped.

Gold was also given support as the U.S. Dollar Index fell by 0.33 percent to 94.64 as of 18:00 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.

Many traders are looking to next week for several economic reports to be released: housing starts is due on Tuesday, existing home sales on Wednesday, and the Philadelphia Fed Outlook along with weekly jobless claims on Thursday.

Silver for May delivery rose 14 cents, or 0.87 percent, to close at 16.313 dollars per ounce. Platinum for July delivery fell 3 dollars, or 0.30 percent, to close at 989.90 dollars per ounce.