Gold slipped Friday undermined by growing perceptions further stimulus measures from the United States were unlikely and by a higher dollar against the euro, which was under pressure from concern about the results of European bank stress tests. Spot gold was bid at $1,583.49 a troy ounce at 1310 GMT from $1,586.75 an ounce late in New York Thursday when the precious metal hit a record high of $1,594.16. Gold recovered some losses after US annual core inflation, which excludes food and energy, for June rose to its highest level since January 2010. “High core inflation ... reduces the chances of more (U.S. monetary easing) and should support the dollar,” said Carsten Fritsch, commodity analyst at Commerzbank. A higher dollar makes commodities priced in the US currency more expensive for holders of other currencies. “But people are looking at the other side of the coin and buying gold as an inflation hedge,” Fritsch said. Spot silver was bid at $38.50 an ounce from $38.18 late on Thursday when it saw $39.34 an ounce, its highest since May 11. Spot platinum was bid at $1,757.00 an ounce from $1,760.80 late Thursday and palladium was at $774.22 an ounce from $772.73. US Federal Reserve Chairman Ben Bernanke said Thursday the central bank is prepared to act if the recovery falters.
