There was mixed trading in precious metals on Friday due to the weakening of the dollar as the US economy reported only 1.6% (annualised) growth in the third quarter - its slowest in three years, as housing slumped and trade deficit widened.Spot gold closed at $599.95, up $8.45, for the week ended October 27.Gold frittered some of its recent gains on light profit-taking, and failed to pierce the psychologically important level of $600/oz.The metal had risen this week as the dollar floundered with the rhetoric on US inflation losing some steam.The recovery in oil prices, too, helped restore the metal's status as a hedge avenue against inflation. Some short-covering in the dollar was seen on Friday, but gold failed to clear the $600-mark.Still, there is considerable support for gold with the change in crude oil prices and the simmering nuclear issue in North Korea.Reports of a decline in global gold production, too, have perked up the metal in the international market. In view of this, the Shanghai Gold Exchange is planning to launch silver trading before the end of this month.The biggest resistance to gold prices is seen at $600/oz. Overall, the bigger picture is still bullish for gold, but in the short term, traders would be watching crude oil prices and be plugged into the news emerging from North Korea. (Source: KEDIA COMMODITIES)
