Strong dollar takes the glaze away
Bullion metals ended lower at Comex on Friday, 10 May 2013. June gold extended losses as the stronger dollar continued to pressure prices. June silver also spent its entire floor session in negative territory. Continued decline in the gold holdings of exchange-traded funds pushed prices down by more than $30 an ounce for the session.
The yellow metal dipped to a pit session low of $1418.50 per ounce but pushed slightly higher in afternoon trade on friday. Gold brushed a session high of $1437.90 per ounce moments before settling at $136.50 per ounce, and booked a 1.9% loss for the week.
Silver traded near the $23.30 per ounce level in morning action and picked up momentum as it headed into the close. Silver touched a session high of $23.69 per ounce and settled lower by 25 cents, or 1.1% at $23.65 per ounce, bringing losses for the week to 1.5%.
BNP Paribas cut its view on gold prices, but said the metal will be trading back above $1,600 an ounce in six months. On Friday, BNP analysts cut their 2013 gold forecast by 5% to $1,580 an ounce. They also knocked their 2014 forecast down by 5% to $1,520 an ounce.
Friday's economic data at Wall Street was limited to the April Treasury Budget, which showed a surplus of $112.90 billion. This was better than the surplus of $112 billion expected by the consensus.
In the currency market on Friday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.5%.
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