Gold edges lower in London

Gold was softer on Friday, coming under pressure from weaker oil prices and a stronger dollar after better-than-expected economic data from the United States. Spot gold was down at $919.70/920.70 an ounce at 1419 GMT from $923.00/924.00 late in New York on Thursday. "Gold is still taking its lead from the external drivers of currency movements and oil price movements," said Suki Cooper, analyst at Barclays Capital.
The dollar rose against the yen on Friday after a government report showing an unexpected rise in durable goods orders and a stronger-than-expected US consumer sentiment reading for July eased worries over the US economy.
A stronger greenback usually pressures gold, which is often bought as an alternative investment to the US currency. Oil fell back below $125 a barrel on Friday, extending a decline that has knocked more than $20 off prices in two weeks. Gold typically moves in line with crude, as it is often bought as a hedge against oil-led inflation.
Platinum hovered just above a six-month low set on Thursday when fears of weakening demand from car makers dragged down prices. "The metal has seen modest demand overnight and given background fundamentals we anticipate strong bargain hunter interest once prices stabilise," said TheBullionDesk.com analyst James Moore in a research note.
Platinum prices have slipped sharply in the past two weeks, and the precious metal is currently trading nearly 25 percent below its March record high of $2,290 an ounce. Spot platinum was at $1,710.50/1,720.50 an ounce against $1,709.50.00/1,729.50 an ounce on Thursday. The metal touched $1,701.50 an ounce, its weakest level since January 31, on Thursday. But palladium, which also touched a six-month low of $371.50 on Thursday, traded lower in line with gold.
"Supply is very healthy for palladium, and even though demand is still robust it doesn't have the same supportive fundamentals as platinum to limit downside risk," Cooper said. Spot palladium traded lower at $378.50/386.50 against $382.00/390.00 late in New York. Among other precious metals, spot silver traded slightly higher at $17.52/17.57 an ounce, against $17.34/17.40 on Thursday.