By Nick Godt & Laura Mandaro, MarketWatch NEW YORK (MarketWatch) -- Gold futures managed narrow gains Friday as a weak reading on U.S. consumer sentiment bolstered the dollar, whose tumble this year has increased the allure of metals and other hard assets. Gold for December delivery added 50 cents to trade $1,107.10 an ounce on the New York Mercantile Exchange. The contract had slipped under $1,105 an ounce on the heels of the Reuters/University of Michigan index, which showed showed consumer sentiment earlier this month fell to 66.0, missing expectations for a rise to 71.8. The index has now fallen for two straight months. Read more on sentiment. The U.S. dollar index (DXY 75.46, -0.14, -0.18%) came off its lows after the mid-morning release. It recently traded slightly down on the session, weighed down as stock investors pushed U.S. equities higher and effectively erased Thursday's drop on Wall Street. A weaker dollar increases the perceived value of hard assets like bullion. The dollar has in recent months tended to fall on good economic news and gain when times look bleak. Read more on the dollar. On Thursday, the December gold contract fell $8 an ounce to post its first loss this month, as the U.S. dollar edged higher. Gold's earlier gains were helped by news that Vietnam has lifted its ban on imports of the precious metal, according to analysts at GoldCore. This "will add fresh impetus and demand into a historically pro-gold region," they wrote in a note. With a volatile dollar, "gold should hold above the $1,000 an ounce level, gather fresh investors and continue its bull run." Gold had been given a lift after the dollar sank as government data showed the U.S. trade deficit widened more than expected, to $36.5 billion in September, and that import prices rose 0.7% last month. See more on the surprisingly wide U.S. trade gap. The dollar index, which tracks the greenback against a basket of six rivals, recently stood at 75.613, up from a low of 75.3040, for a 0.05% daily loss.

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