Gold prices lower as US dollar gains on euro

August gold traded lower in New York Friday, closing down $7.80 to $1,187.80 per troy ounce after having gone as high as $1,203.90 earlier in the session.

The declines came as investors took profits, as well as on gains for the US dollar versus the euro on the news that seven banks out of the 91 European banks subjected to stress tests failed the tests.

Silver prices also fell, with September contracts dropping 2 cents to $18.10 per troy ounce, but October platinum was $up 13.40 to $1,542.80 per troy ounce and September palladium added $9.85 to $466.75 per troy ounce.

September copper traded higher in New York, adding 2 cents to $3.19 per pound, while three-month contracts for the metal used in manufacturing and construction added $19 to $7,029 per tonne on the London Metal Exchange.

The declines for copper came as inventories in warehouses monitored by the LME dropped for the 22nd consecutive week.

Among other base metals, nickel, tin and lead all saw price gains in London, but aluminium and zinc prices were lower.