NEW YORK ( TheStreet ) -- Gold prices saw a modest decline on Friday as the search for stability continues.

Gold for February delivery fell $5.50 to $1,341 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,349.70 and as low as $1,337 during Friday's session. The spot gold price was down $1.90, according to Kitco's gold index.

The U.S. dollar indexwas down 0.79% to $78.23 while the euro was adding 0.94% to $1.36 vs. the dollar.

The focus Friday was on earnings from Bank of America ( BAC) General Electric ( GE) and Google ( GOOG), as well as leadership shake-ups at Google and Hewlett-Packard ( HPQ) so investor interest in gold waned but wasn't violent. The precious metal is down 5.6% so far in 2011. Prices were tentatively supported today by cautious bargain hunters.

Despite gold's double-digit selloff Thursday, the gold exchange-traded fund, SPDR Gold Shares ( GLD), didn't shed any tons and is still holding steady at 1,251.43 tons.

"Further support in gold may be found around $1,345-$1,350," says James Moore, research analyst at fastmarkets.com. "However the metal may struggle with resistance anticipated around the 100-day moving average ($1,354.10)."

Traders remain reluctant to get into gold at these levels. Many seem to be waiting for a selloff or shakeout or for gold to slip to $1,320 or $1,265 an ounce, the 200-day moving average.

"The gold rally is over" is not an uncommon phrase to read or hear right now. As investment demand, defined by those buying gold stocks, futures and ETFs, was the key driver in pushing gold to record highs in 2010, it's also been the key factor in gold's selloff in 2011.

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But that doesn't mean the gold rally is over because bullion sellers and buyers tell another story. Nick Barisheff, CEO of Bullion Management Group, which sells, stores and insures precious metal bars like silver, gold and platinum, is seeing steady demand despite the recent pullback.

"We're just consolidating at this level before the next leg up," he says. Barisheff believes that the main driver for gold will be people's lack of faith in global currencies. "Gold appears to be rising against all currencies but what is really happening is currencies are declining," he says.

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