Forexpros - Gold futures extended losses in U.S. trade Friday, as investors jumped from gold to equities markets in order to capitalize on gains on Wall Street and European stock exchanges.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,741.15 a troy ounce during U.S. afternoon trade, falling 0.98%.
Gold futures had risen as much as USD150 this week, hitting a record USD1,813.79 early Thursday.
U.S. stocks rose early in the trading day Friday, on encouraging news from the U.S. Census Bureau that retail sales had posted their best performance since April, rising 0.5% in July. Forecasts had pointed to a 0.2% increase for the period.
European shares also rallied, as France, Italy, Spain and Belgium began their bans on short-selling Friday, enticing investors back into the market.
By the end of Friday trade, France's CAC 40 rose by 4% to 3,206, the FTSE 100 gained 2.8% to 5,311.80, and Germany's DAX 30 added 3.5% to 5,997.74.
Contributing to falling gold prices, the CME Group, operator of the Comex announced Wednesday that it was raising the amount of cash that traders must deposit for speculative positions by 22%.
The CME increased the so-called initial margin to USD7,425 per contract from USD6,075. The higher rates were forecast to thin the market of smaller investors who must pay a higher fee to trade a futures contract.
Elsewhere on the Comex, silver for September delivery rose 1.17% to trade at USD39.15 a troy ounce, while copper for September delivery fell 1.29% to trade at USD3.991 a pound.