Gold Slips to a Two-Week Low as Dollar Surges

Gold prices slipped Friday to a two-week low as a surging dollar offset support from rising equities, higher crude oil prices and strong investor demand for gold.

The greenback climbed 0.58 percent to 79.82 to hit a seven-week high against the euro, which tumbled from yet more bad news in the Eurozone.

The credit ratings of Portugal, Hungary and Belgium were downgraded Friday and an auction of two-year Italian bonds brought a Eurozone-era high yield of eight percent -- despite intervention from the European Central Bank.

Gold found support from both sides of the Atlantic.

European stocks were up, with Germany's DAX and France's CAC 40 gaining 1.2 percent. U.S. stocks rose initially before falling into negative territory where they settled. The S&P 500 fell 3.12 to 1,158.67, the Dow Jones Industrial Average lost 25.61 to 11,231.94 and the Nasdaq Composite was off 18.57 to 2,441.51.

Tensions over Iran, Syria and Egypt boosted West Texas Intermediate crude oil to $96.86 per 42-gallon barrel, which also supported the yellow metal.

Finally, continued investor demand strengthened gold prices. Global holdings of gold exchange-traded products set a record high, with inflows so far this month double the same period last month.

Central banks continue increasing their gold purchases, with third-quarter deals rising to 148.6 metric tons.

Gold for immediate delivery fell $12.88 to $1,684.34.

Silver for immediate delivery fell 74 cents to $31.08.