Gold rises but silver slips at Comex on Friday

Big losses at Wall Street lure investors towards bullions

Bullion prices ended mixed on Friday, 24 January 2014. Gold prices rose on Friday as losses in U.S. equities helped lure investors to the perceived safety of the precious metal. Prices, however, finished well off the session's high.

Gold for February delivery rose $2, or 0.2%, to settle at $1,264.30 an ounce on the Comex division of the New York Mercantile Exchange. For the week, prices gained 1%.

March silver closed down 24.5 cents, or 1.2%, to $19.765 an ounce on Friday but 2.7% lower than last Friday's close.

The US market spent the entire session in a steady slide amid continued concerns regarding China. Furthermore, participants kept a close eye on the foreign exchange market where emerging market currencies weakened while the Japanese yen saw its second consecutive day of gains. The yen strength came about after Bank of Japan officials said the Japanese economy remains on track and there is no need for additional easing at this time.

China's flash purchasing managers index (PMI) fell to 49.6 in January from 50.5 in Decemberthe lowest reading in six months. A PMI reading below 50.0 suggests contraction in the manufacturing sector. The weaker data is also a bearish underlying factor for the raw commodity sector, as China is the world's largest consumer of metals and other raw commodities.

Meantime, the data firm Markit reported the European Union's preliminary PMI came in at 53.2 in January from 52.1 in Decemberthe best reading in two and one-half years. This latest economic data from the EU corroborates other recent data that suggests the bloc has pulled out of economic recession. The report also hints the European Central Bank will not have to implement additional monetary stimulus measures.

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