Gold Prices Dip as Dollar Strengthens (Update 1)

Updated from 10:06 a.m. EDT with settlement prices

NEW YORK (TheStreet) -- Gold prices fell Thursday as the U.S. dollar strengthened against the euro.

Gold for December delivery dipped $1.50 to settle at $1,770.20 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,774.90 and as low as $1,757.70 an ounce, while the spot price dropped $1.90 an ounce, according to Kitco's gold index.

"You get slower growth on the industrial side, people are kind of downbeat on the market right now, so you're getting a little bit of liquidation," said Phil Streible, senior commodities broker at RJO futures.

Streible said Treasury bonds and the dollar were being favored as investor safe havens over the precious metals on Thursday.

Silver prices for December delivery were off about 9 cents to settle at $34.68 an ounce, while the U.S. dollar index was jumping 0.42% to $79.44.

The Chinese flash manufacturing purchasing managers' index in September inched up to 47.8 from August's final of 47.6. This still marked a slowdown in the country's manufacturing sector as a reading below 50 typically denotes contraction.

Markit Economics said that the eurozone composite PMI, which included manufacturing and service sector data , dipped to 45.9 from 46.3 in August. It was the lowest level the index has reached since June 2009.

Streible said investors are going to have to look at the fundamentals of silver prices, as they may eventually take a bigger dip to reflect the manufacturing slowdown in China and elsewhere.

Gold mining stocks were mostly lower Thursday. Shares of Eldorado Gold (EGO) were falling 3%, while Yamana Gold (AUY) was declining 2%.

Among other mining stocks, Kinross Gold (KGC) was shedding 1.7%, and Barrick Gold (ABX) was falling 1.2%.

Gold ETF SPDR Gold Trust (GLD) was down 0.2%.

-- Written by Joe Deaux in New York.

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