Gold Prices Rise as Euro Gains Offset Crude Oil Losses

Gold prices climbed Friday, their 21st daily increase in the last 24 trading sessions, toward a two-month high as support from a weaker dollar offset falling crude oil prices.

The Dollar Index, which gauges the value of the greenback against six major rival currencies, slipped 0.22 percent to 78.94. A weaker dollar encourages gold buying by making it less expensive for people who use non-U.S. currencies.

Crude oil hovered near six-week lows and copper was headed for its first weekly loss in the last four weeks. Commodities often move together, so declining commodity prices tend to weigh on gold prices.

But gold is on a roll. Since Dec. 29, 2011, its Comex price has broken through both the 200-day and 100-day moving averages and in the last five weeks the yellow metal has had its strongest start to a year since 1983. About the only achievement left is setting a record high.

But first it must break through its next key resistance point, seen around $1,800. Last year it faced a similar challenge and failed, dropping $300 per troy ounce. Analysts have begun sounding cautious.

With gold rising more than 15 percent higher in just a little more than a month, it behooves short-term gold traders to seriously consider the possibility that the yellow metal has gotten ahead of itself, wrote financial newsletter guru Mark Hulbert, according to MarketWatch.

Gold for April delivery gained $3.30 to $1,762.60, while spot gold slipped 40 cents to $1,759.63.

Silver for March delivery edged 10 cents higher to $34.28, and spot silver fell seven cents to $34.27.