US gold futures were whipped lower by early Friday, as a resurgent dollar prodded traders to trim positions in the precious commodity, but prices held above a fresh eight-day low in thin, pre-weekend trade.
A firmer crude oil price failed to boost gold's safe-haven appeal for investors as the market continued to consolidate below last week's eight-month highs, dealers said.
December delivery gold on the New York Mercantile Exchange was down $1 at $443.70 an ounce by 10:27 am EDT, gyrating in a range of $446 to $442.40, which marked its weakest level since August 11.
"We've had several days of euro weakness, so you are maybe seeing some residual profit taking on longs," said a trader.
"This is a lot of technically oriented trading. I think it's a continuation of a consolidation theme that should bring us a bit lower in gold."
Gold probably would drift further from last week's high in futures above $455 an ounce and above $449 in spot, traders said, though physical buying and bargain hunting should offer some support. No major US economic data are due until Wednesday. Support in spot was seen at around $438, dealers said. Mining shares rose earlier Friday as investment bank Merrill Lynch raised its earnings estimates on the sector.
Chartists eye next support in COMEX December gold at $442.90 and then at $440, with resistance at $452 and then at the eight-month high of $455.30, followed by $460.
Spot gold sagged to $438.50/439.30 an ounce, from Thursday's late New York quote at $439.20/440.00. Friday's afternoon fix in London hit $439.25 September silver futures were up 0.7 cent at $7.005 an ounce, dealing from $6.955 to $7.03. Speculators are starting to roll September positions into next active December before delivery period starts next month. Spot silver hit $6.99/7.02 an ounce, from $6.98/7.01 late on Thursday. It fixed at $6.995.
October platinum lost $1.50 to stand at $891.50 an ounce. Spot platinum traded at $886/889.
September palladium eased 25 cents to $183.60 an ounce. Spot fetched $183/186.