Gold falls on stocks rally

Gold futures on the COMEX division of the New York Mercantile Exchange kept slipping Friday as gains in the U.S. stocks crippled demand for the precious metal as an alternative asset.

The most active gold contract for December delivery fell 2.2 U. S. dollars, or 0.18 percent, to 1,239 dollars per ounce. But gold still ended the week with a gain of 1.4 percent, rising for the second week in a row amid global economic concerns.

U.S. stock markets concluded the week with a relative high note, with all major benchmarks registering more than one percent growth on Friday. Gains in equities reduced demand for gold as a safe- haven asset.

However, the prospect of another bailout program for Greece triggered higher demand for gold, curbing its fall.

Vice President of the European Commission Jyrki Katainen said in a statement Thursday that: "There should be no doubt that Europe will continue to assist Greece in whatever way is necessary to ensure reasonable financing conditions for the Greek state and to smooth the path back to full and sustainable market access."

Since May 2010, Greece has received a total of 240 billion euros (303.8 billion dollars) in aid from the European Commission, the International Monetary Fund and the European Central Bank.

Market analysts believed that as global economic concerns weigh on investors, gold will hold around 1,240 dollars per ounce.

Silver for December delivery lost 10.6 cents, or 0.61 percent, to close at 17.331 dollars per ounce. Platinum for January delivery rose 9.6 dollars, or 0.77 percent, to close at 1,261.5 dollars per ounce.