Gold Prices: More Slippage

Gold prices were sinking Friday as the U.S dollar continued to gain strength.
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NEW YORK (

TheStreet

) --

Gold prices

were falling on a mixed

U.S. unemployment report

.

Gold for April delivery was falling $3.90 to $1,059.10 an ounce at the Comex division of the New York Mercantile Exchange. Prices have traded as high as $1,069.40 and as low $1,049.60. The

U.S. dollar index

was rising 0.37% to $80.29.

Gold prices pared back earlier losses after a confusing

U.S. unemployment number

. The U.S. economy lost 20,000 jobs in January, after some analysts expected an increase in jobs, but the unemployment rate was reduced from 10% to 9.7%. Gold was slipping over $8 before the report, but prices rebounded slightly on the news.

Gold prices

plummeted $50 on Thursday and more short term pressure is expected as European sovereign debt fears weigh on markets. Mounting debt worries out of Greece, Spain and Portugal pressured the euro and boosted the dollar to a seven-month high. These concerns coupled with China credit tightening are curbing investors risk appetite for commodities and dragging down gold prices.

"I think we are going to hold this level ... the $1,000 level," predicts David Morgan, founder of Silver-Investor.com. "

Prices could go lower to probe that area, in fact

they probably will. The next area of support of about $1,033 ... I think it is probably a buy the dip opportunity here."

Silver prices

were slipping 28 cents to $15.07 while copper was down 2 cents to $2.85. Platinum and palladium continue to track the other precious metals sinking to $1,476 and $388, respectively.

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Mining stocks, a more leveraged way to

invest in gold

, were recovering slightly after Thursday's dramatic selloff.

Barrick Gold

(ABX)

and

Newmont Mining

(NEM) - Get Report

were flat at $33.84 and $43.34, respectively.

Kinross Gold

(KGC) - Get Report

was falling 0.98% to $16.23 while

Goldcorp

(GG)

was down 0.87% to $32.92. The company recently secured an important gold and silver resource the

Camino Rojo Project

in Mexico.

Shares of

Freeport McMoRan Copper & Gold

(FCX) - Get Report

were flat at $66.52 while

Yamana Gold

(AUY) - Get Report

was down 1.02% to $9.75.

Shares of

SPDR Gold Shares

(GLD) - Get Report

were sinking 0.92% to $103.41. The ETF shed 5.75 tons on Thursday as investors sold out of the precious metal.

>>Slideshow: How to Invest in Gold

>>More stories on gold investing

--

Written by Alix Steel in New York

.

Alix joined TheStreet.com TV in February 2007. Previously, she held positions in film and theater production, management, and legal administration. Alix has a degree in communications and theater from Northwestern University.