Gold Down to End Day but Up to End Week

Friday, 22 March 2013
Written by  Market Watch
Published in Gold Investing
Gold fell off from their highest point this week and ended the day down. However, the yellow metal still finished up overall for the week, which made that a third straight week of gains. All of this despite the fear and concerns coming out of Cyprus. Silver was also down today, going into the weekend with a loss.


Gold for delivery in April GCJ3 -0.45% was down by $7.70, or 0.5%, to settle at $1,606.10 an ounce on the Comex division of the New York Mercantile Exchange. The yellow metal ended the day down, but ended the week up. May silver SIK3 -1.91% dropped by 51 cents, or 1.8%, to end at $28.70 an ounce, giving back Thursday’s 1.4% gain. Prices ended 0.5% lower for the week.

Despite the falls in price for gold, the overall week was still up. Tracking the most-active contracts, prices finished the week up 0.9%, the third straight weekly gain, according to FactSet data. Friday’s session loss was only the second one in seven sessions. On Thursday, prices added 0.4% to settle at $1,613.80, the highest settlement since Feb. 26.

Safe-haven buying took a bit of a breather Friday, at least judging from the currency market. The ICE dollar index DXY -0.59%, which measures the greenback against a basket of six major currencies, fell to 82.412, down from 82.833 late Thursday. The greenback weakened as the euro EURUSD +0.65% recovered some of the ground it lost this week.

Gold was on a nice four day run earlier this week because of all the safe haven buying that was taking place. That has slowed down a bit now, as some chose to run with their profits.

“Today’s rebound in the euro, which has weighed on gold, is suggestive of some expectation that Cyprus and the troika will cobble together a plan B before Monday’s deadline,” said Peter Grant, chief market analyst at USAGold. “However, deal or no deal, Cyprus — like some of the other Southern European countries — doesn’t have an easy road ahead.”

Overall, the yellow metal looks poised to make gains next week as well, as most investors and traders agree that the yellow metal should go up again and make next week an overall fourth straight week of gains.

Original Article: Market Watch by the Wall Street Journal

Read 1098 times