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MTECHTIPS;Gold tracks equities lower, heads for 2nd weekly fall
Gold gave up early gains on Friday as shares in Asia slipped following a three-day rally and as investors took a breather ahead of the outcome of a summit on solving the euro zone debt crisis, which could support the euro.
Recent stimulus measures by central banks boosted gold‘s appeal as a hedge against inflation and sent prices to an 11-month peak of $1,795.69 an ounce in early October, but a rebound in the dollar and uncertainty in Europe later trimmed gains.
Gold hit an intraday high around $1,743 an ounce before slipping to $1,737.65, down $3.44, as it headed for its second weekly fall. The metal struck a lifetime high around $1,920 in September last year.
“There’s some disappointment after (gold) could not pass through $1,754 to $1,755. And then a stronger dollar dragged down the market,” said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong, adding that dealers were also waiting for the outcome of the euro zone summit.
“I think gold just follows the U.S. dollar. At $1,700, it seems quite a number of people want to buy at this level.”
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