(Gold story updated with latest prices)
NEW YORK (TheStreet) -- Gold prices were exhibiting conflicted action Friday afternoon as investors braced for more clarity on the direction of the U.S. dollar, closely monitoring news out of the G20 finance ministers and central bank governors meeting in Korea this weekend.

Gold for December delivery was down 30 cents to $1,325.30 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Friday has traded as high $1,328.80 and as low as $1,315.60. Gold prices were in limbo, trading tightly between negative and positive territory throughout Friday.

The U.S. dollar index was 0.1% higher at $77.53 while the euro was flat at $1.39 against the dollar. The spot gold price was up 50 cents, according to Kitco's gold index.

As EverBank World Markets' assistant vice president Mike Meyer pointed out, one of the main drivers behind the U.S. dollar at the moment is uncertainty over the outcome of the G-20 meeting this weekend.

"Currency traders seem a bit sensitive and risk averse as an official from a G-20 country said global finance ministers are planning to say members will refrain from competitive undervaluation of currencies to alleviate trade tensions," Meyer said in a daily report.

"The official also said they want a more market-determined exchange-rate system that minimizes adverse effects of excess volatility and disorderly movements in exchange rates. At the same time, we have Geithner saying he's trying to persuade leaders that the U.S. isn't trying to weaken the dollar." Meyer noted that, furthermore, Brazil's finance minister had claimed he had spoken to U.S. Treasury Secretary Timothy Geithner over the phone about working out an agreement to prevent the dollar from falling.

Meyer echoed the thoughts of many investors when he said, "I just don't understand how proclamations of a strong dollar, or at least one that isn't weakening, can even be discussed at a time when the Fed is talking about adding quantitative easing."

On Thursday, gold prices were falling as the jobs report came out better than expected, a number of positive earnings reports emerged and the broader stock indices rose. Stocks had ended higher in a volatile trading session.

Initial weekly claims declined by 23,000 to 452,000 in the week ended Oct. 16, from the week before. However, the extent of the decline was amplified by the Labor Department's upward revision of the previous week's figure to 475,000 from 462,000. Analysts on average predicted that initial claims would fall by 7,000 to 452,000, according to Briefing.com.

"With risk appetite and investor confidence showing signs of returning, there is the risk of further profit taking in both gold and silver; however with background dollar weakness lurking, investor concerns about the long-term inflationary implications of QE (quantitative easing) and physical demand at its seasonally strongest, we expect dips to remain well supported and viewed as a buying opportunity," FastMarkets.com research analyst James Moore said in a daily report.

In a daily report, BGC Financial technical strategist Roger Volz said gold has moved into the beginning of a 21 to 55 day corrective phase below $1,346 with its next downside continuation line at $1,310.

Silver prices were flat at $23.22, while copper was flat at $3.80.

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Gold mining stocks, a risky but profitable way to buy gold were trading in mixed territory Friday afternoon.

NovaGold Resources ( NG) has been advancing by 4.8% to $9.44, while New Gold ( NGD) was down 0.3% to $6.57. Barrick Gold ( ABX) was up 0.7% to $45.75, and Kinross Gold ( KGC) was higher by 0.5% to $17.60.

-- Written by Andrea Tse in New York.

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