MUMBAI (MarketWatch) -- Gold futures slumped on Friday, giving back some of their gains from the previous session when the euro rallied and the dollar fell after European leaders agreed to a rescue package to tackle the region's sovereign debt crisis. Gold for December delivery GC1Z -0.44% fell $12.10, or 0.7% to $1,735.60 an ounce. On Thursday, the contract gained $24.20, or 1.4%, receiving a lift from sharp gains in the euro and a weaker dollar. A weaker U.S. currency can boost the precious metal, which has tended to trade in lockstep with other dolllar-denominated commodities and risk assets. But on Friday, the dollar index DXY -.00% , which measures the U.S. unit against six major currencies, gained back some ground, rising 0.1% to 75.12. The euro fell back against the dollar as investors awaited news on whether Asian countries, mostly China and Japan, would participate in Europe's rescue fund.
