Gold futures fell Friday, pacing losses in crude oil and paring last year's gains, as a stronger U.S. dollar reduced the metal's appeal as an alternative investment. Gold for February delivery dropped $12.30, or 1.4%, to $872 an ounce on the Comex division of the New York Mercantile Exchange, The precious metal had ended last year's trading up 5.5%, making its eighth straight yearly gain, the longest winning streak since at least 1980. Gold's losses on Friday were "tracking movement in the dollar," said economists at Action Economics. "However, expectations of more U.S. economic data weakness and continued tension in the Middle East should limit the pace of any decline." In currencies trading, the dollar moved higher against a basket of its major rivals. The dollar index rose 0.4%. The dollar and gold prices tend to move in the opposite direction. Also helping gold lower was falling crude-oil prices, which reduce gold's appeal as a hedge against inflation. February crude dropped 4%, paring its 14% gain in the previous session. In the Middle East, thousands of Palestinians in the West Bank have joined demonstrations after a call from Hamas for a "day of wrath" against the Israeli attacks on Gaza, the BBC reported Friday. Protests have also been held around the Muslim world. Other metals mixed In other metals trading, March copper rose 2.3% to $1.442 a pound. Copper ended last year's trading down 54%. March silver futures fell 0.9% to $11.19 an ounce, April platinum lost 0.8% to $933.50 an ounce and March palladium slid 1% to $186.90 an ounce. In gold spot trading, the London gold-fixing price -- a benchmark for gold traded directly between big institutions -- stood at $869.75 an ounce Friday morning, up $4.75 from Wednesday morning.

Source