Gold Rebounds, as Dollar Slumps

The precious metals patch recouped much of Thursday's losses.
By Simon Constable ,

Gold prices climbed higher Friday as the greenback sank.

Benchmark bullion futures closed $7.50 higher at $925.80 an ounce on the Comex division of the New York Mercantile Exchange.

News that the inventory of unsold homes in the U.S. rose to 11 months of supply during April, up from 10 in March, helped undermine confidence in the dollar. As the value of the U.S. currency declines, the price of gold tends to move upwards.

The

SPDR Gold Trust

(GLD) - Get Report

, which holds bars of solid gold, was rising 0.3% in recent trading on the

New York Stock Exchange

.

As for the precious metals patch, African miners

Gold Fields

(GFI) - Get Report

and

Harmony Gold Mining

(HMY) - Get Report

were both declining despite the rally in the metal price, off 1.4% and 1.8% respectively.

Agnico Eagle Mines

(AEM) - Get Report

was up 0.8%

In the foreign-exchange market, one euro was buying $1.5776 vs. $1.5697 on Thursday. One dollar was trading for 103.3 Japanese yen declining from 104.3 yen previously. The British pound was selling for $1.9744 vs. $1.9715.

The

CurrencyShares Euro Trust

(FXE) - Get Report

and the

CurrencyShares Japanese Yen Trust

(FXY) - Get Report

were rising 0.4% and 0.8% respectively. The

CurrencyShares British Pound Sterling

(FXB) - Get Report

was up 0.1%.

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