Gold Futures Slip as Dollar Rises

NEW YORK (TheStreet) -- Gold futures are searching for direction Friday amid an improving U.S. dollar and a weak equities market.

December-dated gold futures recently were slipping to $1,057.80 an ounce at the Comex division of the New York Mercantile Exchange, falling from its $1,071 high. The contract has traded as low as $1,050.40 and as high as $1,068.80 so far during the session. Silver prices were gaining 20 cents to $17.75 an ounce.

The U.S. dollar improved against most major currencies, rallying off a 14-month low vs. the euro.

Gold's Imminent Correction

"If the dollar gets a rally here -- and I believe it is overdue for one -- then gold will probably sell off," says David Morgan, founder of Silver-Investor.com. "What's happening is that as all of this TARP money and all these bailouts are taking place more and more people become interested in the gold and silver markets and start putting money into the markets...that's what's driving the price higher but the dollar will have a [short-term] impact."

Shares of the popular SPDR Gold Shares ETF(GLD Quote) were little changed at $103.76. Its gold holdings remained static at 1,108 tones, despite steady volume.

In mining stocks, Barrick Gold(ABX Quote) was pulling back to $37.79 after an earlier 1.5% gain while AngloGold Ashanti(AU Quote) remained little changed at $43.41. Shares of Freeport McMoRan Copper & Gold(FCX Quote) were trading lower by 1% to $82.10, after the company's good quarter and new annual dividend.

-- Written by Alix Steel in New York.