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Gold ends lower as dollar rallies, logs 2.4% weekly gain

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AP

Gold settled lower on Friday as a rise in the dollar capped four days of gains, though the metal remained supported around the $1,220 level by the prospect of a widespread economic slowdown that could keep interest rates low.

Strength in the U.S. currency drove commodities lower across the board, with Brent crude oil futures earlier tumbling more than 1 percent towards a four-year low, while worries about the world economic outlook hit stock markets.

Spot gold was down 0.2 percent at $1,22 an ounce, while U.S. gold futures for December delivery settled $3.60 lower at $1,221.70 an ounce, but gained 2.4 percent on the week.

``We saw a great bounce from the triple bottom, but once again momentum faded,'' Sharps Pixley CEO Ross Norman said.

``Gold is now at the top end of the range $1,183-$1,240 at the moment tracking sideways, looking to see whether the U.S. dollar should weaken ... but at the moment we don't see it getting through resistance at $1,240.''

Gold hit a 15-month low of $1,183.46 on Monday after strong U.S. jobs data fueled talk that U.S. interest rates could rise sooner rather than later. Gold has since rebounded, however, and remains on track to post its biggest weekly gain in four months.

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The gold recovery gained momentum after minutes of the Fed's September meeting, released on Wednesday, showed that officials were struggling with how to deal with the dual threats of a stronger dollar and a global slowdown.