Gold futures retreated early Friday, tracking a weaker euro, after financial markets digested slower-than-expected US economic growth, which at first boosted metals prices, dealers said. Traders were reluctant to add much to holdings, however, as they wrapped up contract rollover before the weekend and the dollar strengthened on lower oil prices and positioning before a busy next week.
"Gold is following the euro, which has taken quite a tumble. The charts are identical," Refco metals analyst Tom Boustead. "We have substantially lower crude oil prices and that may be weighing on the euro and gold at the same time here."
By 10:50 am EST (1550 GMT), newly most active April delivery gold slid $1.20 to $427.20 an ounce on the New York Mercantile Exchange's COMEX division, trading from $429.70 to $426.10. Front month February was off $1.40 at $424.90, in a session range of $427.50 to $424.
New York traders this week have been occupied mostly with transferring positions from February gold into April before first notice day for delivery on Monday.
Market sources said they saw barely any reaction to the launch on Friday of a second US gold exchange-traded fund, iShares COMEX Gold Trust, on the American Stock Exchange.
Spot gold limped to $424.90/5.70, compared with Thursday's late New York quote at $425.70/6.50. London's afternoon fix was at $426.80.
March silver fell 3.0 cents to $6.79 an ounce, within a range of $6.88 to $6.75. Spot was worth $6.75/78, below its prior late quote of $6.78/81. The fix was $6.77.
April platinum lost $1.30 to $870 an ounce. Spot platinum stuck near $868/872. Thinly traded March palladium slipped $1.25 to $190.50 an ounce. Spot was frozen at $187/192.