Gold Settles Down After Tremendous Record Above $950

Gold futures closed at a lower spot after hitting a three-week high above $950 an ounce Thursday, as a slight recovery in the dollar promised profit-taking in the metal.

But near record-high oil prices have increased demand for gold to get insured against inflation and are seen keeping up the market.

Spot gold climbed at $952.60 an ounce and was last at $938.90/939.70 at 2:15 p.m. EDT, against $943.90/944.70 in New York late on Wednesday, when the metal picked up 2 percent.

The euro retreated from a record high against the dollar after Eurogroup head Jean-Claude Juncker said excessive exchange rate volatility was bad for global growth and called euro gains against the dollar "undesirable."

Gold often moves in the opposite direction of the dollar, as the metal is traditionally considered an alternative investment and a safe-haven asset.

But the metal got support from oil, which set a record above $115 a barrel as a fall in U.S. gasoline inventories raised supply shortage concerns ahead of the summer driving season.

In other markets, U.S. gold futures for June delivery settled down $5.40 at $942.90 an ounce, after Wednesday's rise to a 2-1/2 week peak.