Gold drops on stronger dollar

Gold futures on the COMEX division of the New York Mercantile Exchange dropped Friday on a stronger U. S. dollar.

The most active gold contract for December delivery dipped 3.6 dollars, or 0.29 percent, to 1,221.7 dollars per ounce. Gold ended the week with a 2.4-percent gain, the first weekly gain in six weeks.

The dollar index, a measurement of the greenback against a basket of six other currencies, rose 0.4 percent Friday. An improving U.S. economy boosted dollar, undercutting the metal's appeal as an alternative investment.

Meanwhile, dropping oil prices, hovering at multi-year lows, also put a restraint on gold.

However, bearish stock markets worldwide and the prospects of a widespread economic slowdown offered some support to gold, and limited its fall Friday.

Meanwhile, India's demand for gold is also picking up ahead of the Diwali Festival, a key gold-buying period.

Silver for December delivery lost 11.5 cents, or 0.66 percent, to 17.303 dollars per ounce. Platinum for January delivery shed 16. 7 dollars, or 1.31 percent, to 1,261.6 dollars per ounce.