Metals - Weekly review: Dec 30 - Jan 4
Investing.com
Published Jan 05, 2014 08:20AM ET
Investing.com - Gold and silver futures extended the previous session’s gains on Friday, as robust physical demand from China and losses in equities markets bolstered demand for the precious metals on the second trading day of the year.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery rose 0.90% to settle at USD1,236.00 a troy ounce. Gold prices rose to a session high of USD1,239.60 a troy ounce, the strongest level since December 18. For the week, the metal rose 2%, the most in ten weeks.
Silver for March delivery rose 0.11%, to USD20.15 a troy ounce.
Gold was boosted by continued strength in physical buying from China, the world’s largest consumer. Gold futures received an additional boost from declines in U.S. equities in the wake of cautiously optimistic comments from Federal Reserve Chairman Ben Bernanke.
Bernanke said the U.S. economy should continue to improve in 2014, but reiterated that monetary policy will remain “highly accommodative” for as long as needed.
However, the broadly stronger U.S. dollar held gold’s gains in check. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was last up 0.40% to 81.04.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Gold’s gains came after the precious metal tumbled 28% in 2013, the worst yearly performance since 1981 and the first annual loss since 2000. Gold futures were driven lower as expectations for the Federal Reserve to start scaling back stimulus measures weighed.
Elsewhere, copper futures for March delivery declined 0.86% to USD3.353 a pound. Platinum was up 0.56% to USD1, 412.45 and palladium slid 0.31% to USD728.00 an ounce.
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Written By: Investing.com
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