NEW YORK—Gold prices fell slightly Friday as a stronger dollar prompted selling from investors seeking commodities as an inflation hedge.

The 15-nation euro bought $1.4671, down from $1.4702 late Thursday in New York. A stronger dollar typically encourages investors to shed hard assets like gold, which is viewed as a safe-haven investment used to hedge against inflation and weakness in the U.S. currency.

Gold for December delivery fell $2 to settle at $835.20 an ounce on the New York Mercantile Exchange, after earlier dropping as low as $834.

Other precious ...

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