Speculation Perks Up Gold

In particular, producers cut their gold price hedging by 1.5 million ounces, with activity by Barrick Gold(ABX Quote) dominating.

The process often involves buying back futures contracts, which in itself provides price support for gold. However, unwinding futures positions can be viewed as negative because once hedges are removed, less potential buying power remains.

As for the equities, UBS upped its rating on shares of Pan American Silver(PAAS Quote) to buy from neutral and pinned a $35 price target on the stock, following Thursday's earnings report. Shares rose 5.9% to $31.03.

RBC Capital Markets dinged shares of Newmont Mining(NEM Quote) down to an underperform rating from sector-perform, sending the shares lower by 1.8%.

Palladium producer Stillwater Mining(SWC Quote) reported fourth-quarter earnings of 3 cents a share, reversing losses of 3 cents in the same period a year earlier. But it wasn't enough to satisfy investors who were expecting income of 5 cents, and the stock was marked down 5.7%.

In other news, the Manhattan-based Economic Cycle Research Institute says its Weekly Leading Index rose 3.4% last week, down slightly from a 3.5% increase the period before. It marks the 18th consecutive uptick in the indicator.

Lakshman Achuthan, managing director at ECRI, says the construction-led components to the WLI stand out as particularly strong, in line with a robust service sector, but in stark contrast to indications of a weaker industrial sector in the future.

That news will no doubt make happy reading for copper bulls, as the metal is a vital part of the building industry where it's used for electrical wiring. Copper contracts added 7 cents to close at $2.85 a pound on the Comex.