The dollar fell against the yen on Friday after a government report showing a slower-than-expected contraction in the U.S. economy in the second quarter was offset by a decline in consumer spending.

That prompted investors to shun risk and weighed on U.S. stock futures. The euro also pared gains versus the dollar after the report.

The U.S. economy contracted at a 1.0 percent rate in the second quarter, according to government data on Friday. Analysts polled by Reuters had forecast GDP falling at a 1.5 percent rate.

Despite the fact GDP fell less than expected, investors focused on the consumer spending component, which showed a 1.2 percent drop after a 0.6 percent rise the previous quarter.

Consumer spending accounts for over two-thirds of U.S. economic activity.

“The better-than-expected number seems to be offset by a renewed decline in consumer spending,” said Ashraf Laidi, chief market strategist at CMC Markets in London.

“This report has written all

Gold rose on Thursday as the dollar fell versus a basket of currencies, with rebounding stock markets and U.S. jobless figures showing a decline in continuing claims boosting appetite for assets seen as higher risk.

U.S. data showed the number of U.S. workers filing new claims for jobless benefits rose slightly more than expected last week, but a gauge of underlying labor trends fell for a fifth straight week.

Spot gold was bid at $933.50 an ounce at 1311 GMT, against $929.00 an ounce late in New York on Wednesday. U.S. gold futures for August delivery on the COMEX division of the New York Mercantile Exchange rose $6.20 to $933.40 an ounce.

“If this is welcomed by the equities market and triggers a fresh boost, that could benefit gold,” said CMC Markets strategist Ashraf Laidi.

The dollar was down 0.39 percent at 79.3 against a basket of currencies and was lower against the euro following the

Gold rose today, Friday, steadying above $931 per ounce as the dollar lost ground versus the euro, with deeper concerns over the U.S. economic outlook also underpinning the metal.

Spot gold stood at $931.70 by 1510 GMT, up from $928.65 late in New York. Earlier it rose to $933.90.

After a week of tracking a volatile dollar, gold is on course for a 0.6 percent fall on the week — retreating further from a four-month high near $990 hit in early June.

The precious metal found support above $931 after falling on Thursday, when weaker-than-expected U.S. non-farm payroll data sent investors piling into the relative safety of the dollar.

The U.S. currency  lost some ground against a basket of six currencies but remained broadly positive on Friday, with U.S. financial markets closed ahead of Independence Day.

Dollar moves have proved influential of late in determining immediate interest for bullion from foreign investors.

But the bleak jobs data

In the currency market, the dollar was marginally lower against the euro. Late Monday, the euro was trading at $1.4078 vs. $1.4068 on Friday.

“The U.S. dollar has started the week a touch firmer, with renewed concerns over the global recovery helping the greenback ahead of a busy week” of economic data, wrote strategists at Brown Brothers Harriman.

With the July 4th weekend ahead, the Labor Department will release the closely-watched tally of non-farm payroll losses a day early, on Thursday. Economists are projecting a net loss of about 325,000 jobs in June. Any strong variance from that figure is likely to have repercussions.

But if there are further indications that the ‘green shoots’ scenario is correct, will that necessarily have a positive effect on the buck? Many doubt it, even though a strengthening economy should portend a stronger greenback.

However, “The past seven years have proven each time U.S. data emerged on

In the currency market, the dollar lost ground to the euro. Late Thursday, the euro was trading at $1.3991 vs. $1.3926 on Wednesday.

“Equity and commodity markets advanced, encouraging rotation out of the greenback,” said analysts at Action Economics.

Also noted was that, “The dollar has been driven over the last two days by central bank activity. One is the Swiss National Bank, which appears to be continuing its buying of dollars,” said Meg Browne, a currency analyst at Brown Brothers Harriman.

The Swiss National Bank is publicly committed to stemming any haven-related appreciation in the franc, but as to what it may be doing, said that it doesn’t comment on intervention rumors.

However, the franc’s strength has proven “increasingly self-sustaining,” says Ashraf Laidi, chief market strategist at CMC Markets in New York. It has attracted support because of “broadening risk aversion, short-lived dollar strength and emerging doubts” about euro-zone banks,” Laidi said.

The

In the currency market, the dollar prolonged its slide by plummeting against the euro. Late Tuesday, the euro was trading at $1.4323 vs. $1.417 on Monday.

“Fund managers continue the search for yield away from dollar-denominated cash onto equities, including [U.S. ones], but especially in emerging markets,” said Ashraf Laidi, of CMC Markets.

The latest green shoot poked above ground in the form of a report from the National Association of Realtors that said pending sales of existing homes rose for the third month in a row in April.

The pending home sales index for April rose 6.7%, the NAR said. That followed a 3.2% increase in March, was the third monthly increase in a row, and was 3.2% above April 2008.

“This is yet another positive indication that the bottoming process is forming” in home sales, wrote Jennifer Lee, an economist for BMO Capital Markets. She added, rather wistfully it seems, “Now

We’ve passed the midpoint in May and gold closed above $930 on Friday May 15th. This could be hugely significant and should give all prudent investors pause for thought.

Allow me to share with you an email message I sent to my family today that focuses in on my concerns on this topic. Although this will not be a long article, it is intended to motivate us to think “outside the box” as we slide into the “Sell in May and go away” time of the year. Here’s what I wrote my family today: “Realizing it is only the middle of May, it might be too early to say “it’s going to be different this year” when it comes to gold and silver.

“During the past seven years gold and silver always corrected between May and October, sometimes just

Gold was essentially unchanged to the mid-point of the London session on Friday, after which it took off and moved sharply higher to late morning, poking above $933 before sliding through the end of the Comex, only to perk up again on the Globex and rise to a finish at $930.90/oz., up $5.20. For the week, gold tacked on 1.6%.

Platinum peaked in the far East, slumped to the New York open, staged a very tepid rally, then slid again to end near its intraday low at $1101, down $10. For the week, platinum shed 4%.

Silver was down from late Hong Kong trading to the New York open, climbed to its high for the day, of $14.15, in the late morning, then slowly keeled over through the Globex to close at $13.95, down 10 cents. For the week, silver was off a miniscule 3/10 of one percent. (Click

In the energy market on Thursday, crude for June delivery edged higher, closing at $58.62/barrel, up 60 cents. June reformulated gasoline rose 3.49 cents, to $1.7237/gallon. Traders ignored the jobs data, focusing on rallying stocks in the U.S. equity indexes, along with surprisingly steady results from major retailers.

Crude’s rebound came after morning trading influenced by the International Energy Agency, which said it now expects demand to fall 2.6 million barrels a day from 2008 levels. That’s 200,000 barrels more than the IEA had projected a month ago.

“Continued oil demand weakness is premised on strong economic recovery later this year remaining elusive,” the IEA wrote, with demand is expected to stand at 83.6 million barrels a day this year.

Oil, along with other commodities and stocks, has benefited from the market’s “vote of confidence” for the economy over the past eight weeks, said Ashraf Laidi, of CMC Markets. But “while

Gold moved above $900 late in the Hong Kong session on Monday, traded between there and $910 all day long, with only one brief peep above and below, and finished at $902.30/oz., up $4.00. Overnight, gold has slipped lower.

Platinum pushed higher in the overseas markets, reaching $970, and that was the peak for the day although the metal did cling to positive territory in the end at $959/oz., up $8. Overnight, platinum is trending lower.

Silver reached the $12 mark early in the London session, then it too got trapped inside a tight range, vacillating between there and $12.10, when it too caught fire and spiked 80 cents over the next two hours, topping out at $12.07 before settling right on the nose at $12.00/oz., up 6 cents. Overnight, silver is little changed. (Click here for charts)

It was a breather of a day for the precious metals,