Bullions add 0.8% on Friday

Prices shed 0.5% on a weekly basis though

Bullion prices ended higher on Friday, 13 December 2013. Gold futures settled higher on Friday after a hefty loss in the prior session, tallying a 0.5% gain on the week, as traders readied for next week's Federal Reserve meeting and possible news on the fate of the central bank's bond-buying program.

Gold for February delivery tacked on $9.70, or 0.8%, to settle at $1,234.60 an ounce on the Comex division of the New York Mercantile Exchange. Futures prices were up 0.5% from last Friday's close of $1,229. Gold prices in the previous session tumbled more than $30 an ounce, their biggest one-day drop since October, amid growing concerns that the Fed could taper its monetary stimulus next week.

March silver also added 15 cents, or 0.8%, to $19.60 an ounce after a drop of 4.4% on Thursday. Prices were up 0.4% from the week-ago close.

Heightened concerns that the Fed will announce a tapering of its quantitative easing program next week took gold off three-week highs, leaving prices close to where they started the week.

Friday's economic data was limited to the November PPI report, which pointed to a downtick of 0.1% while core producer prices rose 0.1%. Both readings matched expectations.

The biggest event for financial and commodity markets next week is the Federal Open Market Committee meeting on Tuesday and Wednesday, and until the Federal Reserve makes an announcement on monetary policy, gold traders will likely spend the early part of the week preparing for the outcome.

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