Gold Finishes the Week Higher After Dipping into Bear Market Territory
By Eric McWhinnie | May 19, 2012 12:53 AM IST
On Friday, gold (NYSEARCA:GLD) futures for June delivery increased $17 to settle at $1,591.90 per ounce, gaining 0.5 percent for the week. Meanwhile, silver (NYSEARCA:SLV) futures jumped 70 cents to close at $28.72.
Both precious metals climbed higher after the U.S. dollar index declined to as low as 81.26 today. “The move up is largely a bounce back from the steep declines we had been seeing in the last two weeks,” said Rohit Savant, an analyst with CPM Group. Gold briefly entered into a bear market earlier this week, but posted its largest gain since January on Thursday.
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A new report released this week by the World Gold Council also helped to stabilize prices. A bright spot for gold demand continues to be the investment sector. For the first-quarter of 2012, gold investment demand jumped 13 percent to 389.3 tonnes, compared to only 343.5 tonnes a year earlier.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) increased 1.07 percent, while the iShares Silver Trust (NYSEARCA:SLV) bounced 2.06 percent. Gold miners (NYSEARCA:GDX) such as Goldcorp Inc. (NYSE:GG) and Newmont Mining (NYSE:NEM) edge .09 percent and .66 percent higher, respectively. Silver miners (NYSEARCA:SIL) First Majestic (NYSE:AG) and Silvercorp Metals Inc. (NYSE:SVM) gained 4.13 percent and 1.76 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS