Gold futures dived sharply on Friday, losing the most in two weeks, as the dollar rebounded against the euro and traders moved in to cash in on their gains. Silver fell from the highest it's been since 28 years.
Gold for April delivery fell $14.50 to end at $913.50 an ounce on the New York Mercantile Exchange. Gold dropped $2.70 this week from last Friday's closing of $916.20 an ounce.
The precious metal hit a record of $942.20 an ounce on January 30 after the Fed cut its benchmark interest rate by 1.25 percentage point last month to 3 percent, causing the dollar to go lower against a basket of currencies. Gold is priced in dollars and moves in the opposite direction of the U.S. currency.
During earlier trading on Friday, the benchmark contract hit $941.80 an ounce in electronic trading, over news that electricity supply problems in South Africa still persist and continue to hinder mining production.
The dollar was lower against the euro in early trading but the dollar gained after a government report showed the U.S. unexpectedly lost jobs last month for the first time in four years. Overall, the dollar rose for the second straight day against a basket of currencies including the euro, pound, yen and three other major currencies.
Silver Index dropped 1.2 percent to 184.07 points. The Chicago Board of Exchange Gold Index fell 2.4 percent to 188.01 points and the Amex Gold Bugs Index dropped 2.2 percent to 448.91 points.