The price of gold was moving higher Friday morning, with the US dollar trading steady versus a basket of currencies as traders await fresh triggers.
Earlier today, ANZ Bank cut its precious metal price forecasts for 2014 to $1,269 per ounce from $1,436 per ounce, citing softer-than-expected demand and negative market sentiment.
Gold for February delivery, the most actively traded contract, added $8.80 to $1,246.70 an ounce.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 843.21 tons.
This morning, the U.S. dollar was lingering near monthly low versus the euro and near a yearly low against sterling. The buck was extending gains versus the yen, while moving lower against the Swiss franc.
In economic news from the euro zone, German retail sales declined unexpectedly in October, data from the Federal Statistical Office revealed. Retail sales fell 0.8 percent month-on-month in October after adjusting to seasonal and working day variations. Economists had forecast a 0.5 percent increase. Sales have now fallen for a second month running.
Meanwhile, euro zone inflation rose to 0.9 percent in November from a four-year low, flash estimate from Eurostat showed. The rate was expected to rise marginally to 0.8 percent from 0.7 percent in October. Nonetheless, inflation has remained below the European Central Bank's target of 'below, but close to 2 percent' for the tenth month in a row.
Another report from Eurostat revealed that the jobless rate dropped to 12.1 percent in October from a record-high 12.2 percent in September. Economists had forecast the rate to remain unchanged at 12.2 percent. The number of unemployed declined 61,000 from the prior month to 19.298 million in October.
Elsewhere, the prices of silver and platinum were trading higher in morning deals.
