NEW YORK (TheStreet) -- Gold futures are rising on U.S. dollar weakness Friday, following profit-taking a day earlier, as investors look for an alternative investment.
December-dated gold futures recently were rising $8.30 to $1,066.90 an ounce at the Comex division of the New York Mercantile Exchange, inching towards its $1,071 high. The contract has traded as low as $1,057.70 and as high as $1,068.80 so far during the session. Silver prices were also gaining 37 cents to $17.91 an ounce.
The U.S. Dollar Index declined slightly, prompting investors to buy gold as a hedge against the flailing currency. But some analysts think the dollar is due for a rally.
"If the dollar gets a rally here -- and I believe it is overdue for one -- then gold will probably sell off," says David Morgan, founder of Silver-Investor.com. "What's happening is that as all of this TARP money and all these bailouts are taking place more and more people become interested in the gold and silver markets and start putting money into the markets...that's what's driving the price higher but the dollar will have a [short-term] impact."
Shares of the popular SPDR Gold Shares ETF(GLD Quote) were rising slightly to $103.92. Its gold holdings remained static at 1, 108 tones, despite heavy volume.
In mining stocks, Barrick Gold(ABX Quote) was trading almost 1.5% higher to $37.93 while AngloGold Ashanti(AU Quote) remained unchanged at $43.34. Shares of Freeport McMoRan Copper & Gold(FCX Quote) were on the rise to $82.98, after the company's good quarter and new annual dividend.
