NEW YORK, Nov 17: COMEX gold futures slipped on Friday in mostly technical trade, but cut morning losses with some assistance from gloomier-than-expected US factory sector news, dealers said.

October industrial production fell 1.1 per cent, its biggest dive in nearly 11 years. The report pressured stocks and the dollar, but put a modicum of support under gold.

Wall Street was looking for a 0.9 per cent drop.

December gold settled down 40 cents at $274.90 an ounce, trading $275.70 to $273.80, where it approached the opening price on Sept. 11 before the attacks on the World Trade Center helped fire a safe-haven rally to $300.

Estimated volume was a moderate 27,000 contracts, compared to an official 35,045 on Thursday.

We came in soft. There were some stops under the 200-day moving average at $274.50, said James Pogoda, a vice president of precious metals at Mitsubishi International Corp.

It bounced a little bit maybe helped by the weaker industrial production number.

The market shook off news that consumer prices fell 0.3 per cent in October and were up 0.2 per cent when volatile energy and food prices were subtracted.

Dealers said the 200-day average at $274.60 was a pivot for December gold. But the morning break was not sustained at the closed.

The market is still looking to fill a gap on the charts from early August between $271.20 and $272.

The fall in crude oil prices this week and the apparent Taliban rout in Afghanistan are eroding gold’s premium as a safe-haven and hedge against inflation.

It’s just suffering from the oil problem and the war is almost over, speculated a bullion dealer.

Spot gold was at $274.60/5.10 an ounce, down from the $275.00/50 close. It fixed late in London at $274.50.

Support for bullion in the market was significantly eroded by the absence of Indian buyers, due to the Diwali holiday, London sources said.—Reuters