Bullions shine on Friday

Prices end mixed on a weekly basis

Bullion prices ended higher on Friday, 27 September 2013. Gold prices closed with a more than 1% gain on Friday ahead of a weekend that could yield a decision on whether the U.S. government shuts down next week. Comments from a Federal Reserve official that suggested a bond-buying taper could be pushed out to next year helped spur the precious metal upward.

Gold for December delivery rose $15.10, or 1.1%, to settle at $1,339.20 an ounce on the Comex division of the New York Mercantile Exchange. Prices finished this week 0.5% higher.

Silver took gold's lead to edge higher, with the December contract up 6.5 cents, or 0.3%, to $21.83 an ounce. Prices witnessed 0.4% weekly decline.

Economic data released Friday showed that a gauge of sentiment among consumers was at its weakest level since April. T The final reading of the September University of Michigan Consumer Sentiment Index was revised up to 77.5 from 76.8 in the advance report. The consensus expected the Consumer Sentiment Index to increase to 77.3. Even though sentiment was revised higher in the final release, the index is still well below the final August reading of 82.1. The month-to-month drop in sentiment was in-line with the Conference Board's Consumer Confidence Index, which dropped to 79.7 in September from 81.8 in August.

Consumer sentiment levels normally follow trends in equity prices, gasoline prices, media reports, and unemployment trends. Even though the initial claims level is clearly showing an improvement in labor conditions, consumers still believe that the labor market is not improving. That negative response offset strong gains in the equity market.

Separately, August personal income increased 0.4% after increasing an upwardly revised 0.2% in July. The consensus expected personal income to increase 0.3%. As expected from the August employment report, wages rose a solid 0.4% in August after declining 0.2% in July.

On Monday, the September Chicago PMI will be reported at 9:45 ET.

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