Gold prices, which have already soared to record levels in recent weeks, could get a further boost from a new investor: central banks.

Stocks are being held hostage by the dollar and the S&P 500 is in a "struggling trend" that could push the index lower or lead to "horizontal" gains, Bill McLaren, independent trader, told CNBC.

It is "not quite time yet" to raise interest rates in the U.S., Charles Plosser, president of the Federal Reserve Bank of Philadelphia, told CNBC Thursday.

U.S. pressure on China to raise the value of its currency amounts to Washington abdicating responsibility for ballooning deficits and would impede global economic recovery, an official Chinese newspaper said on Friday.

The dollar rose for a second straight session Friday as risk tolerance declined, with investors cutting exposure to assets and currencies perceived as higher risk ahead of a holiday-shortened week in the United States.

Expressing frustration over the Obama administration's light touch on China's yuan exchange rate, two U.S. senators asked the Commerce Department to investigate alleged Chinese currency "manipulation."

Treasury Secretary Tim Geithner, in testimony before the Joint Economic Committee Thursday, will argue that "recovery alone is not enough" and that Congress must pass comprehensive regulatory reform to ensure the strength and stability of the economy, according to an excerpt of the speech obtained by CNBC.

The dollar and yen rose Thursday as a pullback in risk appetite amid declines in equity and commodity markets revived safe-haven demand for the U.S. and Japanese currencies.

The sliding dollar has been a big reason why US stocks have rallied this year. But companies with strong foreign sales—which benefit most from the weak dollar—have had the biggest gains by far.

Chinese Premier Wen Jiabao told President Barack Obama his nation does not seek a trade surplus with the United States and wants to balance flows, striking a conciliatory note but avoiding public comment on currency rifts.

The dollar fell against most major currencies Wednesday as dealers took profits on the currency's biggest rise in three weeks, with fresh data doing little to alter the view that U.S. interest rates will remain at record lows well into 2010.

Chinese Premier Wen Jiabao told President Barack Obama his nation does not seek a trade surplus with the United States and wants to balance flows, striking a conciliatory note but avoiding public comment on currency rifts.

European Central Bank President Jean-Claude Trichet on Tuesday backed comments by U.S. Federal Chairman Ben Bernanke about the importance of a strong dollar and said a sound U.S. currency was in the interests of the whole world.

The dollar rebounded Tuesday from a 15-month low after Federal Reserve Chairman Ben Bernanke's rare comments on the currency spurred traders to trim long-term bets against the greenback.