Gold pares some of its weekly advance

Precious-Gold fell on Friday as the dollar continued its bullish trend, taking advantage of budget deficit woes in Greece.

Yesterday, gold gained $21.90 or 2.05% to close at $1095.17 an ounce. Gold's Price was setin London on Thursday at $1076.25 per ounce during the PM fixing, declining from $1079.50 at the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, remained at 1,106.37 metric tons on February 11.

Gold rose to a one week high the previous day, inclining 2.3% this week to mark its best weekly advance in a month, as Greece's debt woes reduced risk taking by investors.

The U.S. dollar surged today against a basket of major currencies, especially the euro to 80.17 from the day's opening at 79.96, seen by the dollar index on the daily charts. The 16-nation currency remained under pressure, despite of the European leader's pledge to help Greece, as investors awaited a divulged plan of rescuing Greece, which in turn raised concerns in markets that the recovery will be affected by the high debt in Greece and other European economies.

By extension, the euro dropped for the third day today ahead of the release GDP for the fourth quarter, which is predicted to retreat to 0.3% from 0.4% in the third quarter. GDP 4Q preliminary reading in Germany slipped to 0.0% in the fourth quarter from 0.7% in the third quarter.

The shiny metal after gaining fears in markets plunged, due to the dollar's rise which eroded demand on the metal as an alternative investment. Meanwhile, gold prices are at $1087.20, recording a high of $1096.95 and a low of $1086.65; where it is moving between support at $1084.00 and a resistance at $1098.00.

In regards to other precious metals; platinum edged down to $1510.50 from the opening at $1521.50, whereas palladium plummeted to $413.50 from $417.20.