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Gold closes slightly lower as dollar’s jump outweighs Turkey contagion fear

Gold futures settled slightly lower Friday as a brewing crisis in Turkey jolted global stocks lower, but delivered a firm boost to the U.S. dollar, weighing on bullion. Gold futures for December delivery on Comex finished down 90 cents, or less than 0.1%, at $1,219 an ounce. The dollar, meanwhile, as measured by the ICE U.S. Dollar Index was up 0.9% at 96.408, marking the highest level in about a year for the dollar gauge. The move comes as the Turkish lira tumbled to a new record low against the buck amid questions about the potential for a crisis in Turkey to spillover into global markets. A stronger dollar can make buying dollar-pegged commodities, like gold, more expensive for buyers using other monetary units. Fears about Turkey contagion were outweighed by the surge in the dollar, market participants said.

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