Gold Slides on Dubai Debt Concerns

NEW YORK (TheStreet) -- Gold futures pulled back sharply on Friday with the rest of the market, breaking a streak of recent record gains as fears about Dubai's debt problems continued percolating around the globe.

Ahead of the Thursday market close for the Thanksgiving holiday, Dubai said that a state-affiliated investment entity sought to delay repayment for some $60 billion in debt. Investors dashed to safer assets following the announcement, with equities and commodities selling off on Friday.

Commodities, in turn, were pressured by a strengthening dollar, as the Dollar Index rose 0.3% recently after surging even more sharply earlier.

Gold for February delivery, the most heavily traded contract on the New York Mercantile Exchange's Comex unit, tumbled $13.10 to settle at $1,175.50 an ounce recently. But with the dollar coming off highs and the precious metal's safe-haven appeal likely making a comeback, gold prices bounced off session lows when the contract hit $1,135.80 an ounce.

Silver for March delivery slid about 47 cents to $18.34, as March copper recently shed 7 cents to $3.13.

Mining stocks were some of the hardest hit in the abbreviated session on U.S. equity markets today, as the Philadelphia Gold and Silver Index declined by 3.8%. Miners felt the reverberations, with shares of Barrick Gold(ABX Quote), Newmont Mining(NEM Quote) and Freeport-McMoRan Copper & Gold(FCX Quote) shedding 3.3%, 2.8% and 3.6%, respectively.

Yamana Gold(AUY Quote) shares were bid lower by 68 cents, or 4.9%, to $13.18.

Bullion ETFs also were hammered, as SPDR Gold Trust(GLD Quote) slid $1.56, or over 1.3%, to $115.06.

Market Vector Gold Miners(GDX Quote) lost $2.01, or 3.8%, to $50.82, as Market Vector Juniors(GDXJ Quote) dipped $1.21, or 4.3%, to $27.09.

-- Written by Sung Moss in New York