Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as U.S. equities touched new highs. The most active gold contract for December delivery fell 10.9 U.S. dollars, or 0.92 percent, to settle at 1,178.40 dollars per ounce.
Gold was put under extensive pressure as the U.S. Dow Jones Industrial Average (DJIA) reached a record level of 19,152.14 points, an increase of 68 points, or 0.36 percent over yesterday.
Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.
In this case, the DJIA reached record levels, driving investors to equities as gold is a non-interest bearing asset.
The precious metal was prevented from falling further as the U.S. Dollar Index fell by 0.2 percent to 101.49 as of 1845 GMT.
The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.
Gold was put under further pressure as a report released on Friday by U.K.-based Markit Economics showed the U.S. PMI Services Flash level at 54.7 during the month of November, a figure which analysts note shows new business growth at the fastest rate since exactly one year prior.
The same analysts note that backlogs have decreased, but that new orders are up. Silver for December delivery added 7.9 cents, or 0.48 percent, to close at 16.47 dollars per ounce. Platinum for January delivery dropped 22.8 dollars, or 2.45 percent, to close at 908.30 dollars per ounce.
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