Gold futures fell for a second day on Friday, as the dollar rose to its highest level in seven weeks against other major currencies, causing investors to lose interest in the precious metal.
Gold for February delivery closed down $6, or 0.8 percent, at $798.0 an ounce on the New York Mercantile Exchange. Gold futures posted a weekly gain of only $2.20 from last Friday's closing level of $800.20.
Gold prices were derailed again today by an onslaught of selling as the US dollar vaulted above the 77.30 mark on the index and crude oil lost more than $1 to near $91 per barrel, said Jon Nadler, an analyst at Kitco Bullion Dealers, in a research note.
The dollar rallied across the board on Friday after a government report showed that consumer prices jumped 0.8 percent, driven by surging energy costs. This lowered the likelihood that the Federal Reserve will continue to cut interest rates.
The dollar index, which tracks the performance of the greenback against multiple major currencies, rose 1.1 percent at 77.445, reaching its highest level since October 25.