GO
Loading...

Gold Ends Up at $1,387, Posts Weekly Gain

Reuters With CNBC.com
Friday, 14 Jun 2013 | 3:27 PM ET
Getty Images

Gold settled higher at $1,387 an ounce on Friday, driven by resilient demand for coins and bars and a pullback in the U.S. equities market lifted gold on the day and for the week.

Traders said rising geopolitical tensions in the Middle East also boosted the metal's safe-haven appeal. Western diplomats said the U.S. is considering setting up a no-fly zone in Syria, which would represent its first intervention in that civil war, after the White House said Syria had crossed a "red line'' by using nerve gas.

Gold rose about 0.3 percent on the week. It has now posted gains in three of the last four weeks following a historic two-day selloff in mid-April.

"We've seen volume remain strong after it dramatically picked up starting in the middle of April,'' said Scott Carter, CEO of precious metals dealer Lear Capital, adding that the sharp price drop prompted investors to add physical gold and silver positions.

Spot gold was last up 0.2 percent at $1,388 an ounce on Friday. U.S. gold futures settled up $9.80 at $1,387.60 per ounce.

U.S. data on Friday showed consumer sentiment edged off a six-year high in June, while manufacturing output picked up a bit last month after two straight months of declines, suggesting the economy remains on a moderate growth path.

Other data on Friday showed wholesale prices jumped in May as gasoline and food prices rebounded.

Markets will watch closely the Federal Reserve policy meeting on June 18 and 19. Most economists expect the Fed to scale back the size of its bond purchases by year end, and several expect reduced buying as early as September, a Reuters poll showed.

Indian Demand Soft

What Japan Means for Gold?
Japan jolts gold. What's the outlook for the precious metal, with Andrew Busch, The Busch Update, CNBC's Jackie DeAngelis and the Futures Now Traders.

Worries about a possible Fed stimulus withdrawal sent the S&P 500 index down nearly 1 percent this week.

The largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings declined by 6.3 tons on Thursday, reversing gains earlier this week.

Silver last climbed 1.2 percent to $22 an ounce.

HSBC lowered its platinum price forecasts for this year and next, even though supplies are tight, citing the sharp selloff in gold so far this year.

Platinum and palladium both posted their biggest weekly falls since the mid-April slide. Analysts cited easing supply worries after South Africa's Association of Mineworkers and Construction Union (AMCU) delayed plans on Thursday to strike.

Spot platinum was down 0.6 percent at $1,442 an ounce, notching a 4-percent weekly drop. Palladium inched up 0.1 percent to $730 an ounce, ending the week about 3.5 percent lower.

  Price   Change %Change
GLDiv.P
---
SILV/USD
---
PLAT/USD
---
PALL/USD
---

Featured