Gold for June delivery added $16.50 to close at $1,508.90 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,515.80 and has hit a low of $1,486.40. The spot gold price was rising by $20, according to Kitco's gold index.
Silver prices rose 15 cents to close at $35.08 an ounce. The U.S. dollar index was adding 0.38% to $75.38, but the euro was tanking 0.8% against the dollar and gold in euro terms was more than 2%.
The SPDR Gold Shares (GLD), the biggest physically backed ETF, shed less than 1 ton, underscoring the lack of conviction from buyers and sellers. David Banister, chief investment strategist at ActiveTradingPartners.com, says predicting where gold and silver will go next is a little tricky right now. "I think it's unlikely that we get any lower than $1,440. My current forecast is actually for that $1,462 to hold." Once gold shakes out this correction, Banister thinks it will attack new highs of $1,625 sometime in the summer. Banister thinks that $1,625 gold means that silver will be at $41/$42 an ounce. Most experts think that gold and silver will continue to find direction from the U.S. dollar. As the currency weakens, metals move higher as they retain more value and inversely when the dollar strengthens, the safe haven assets becomes a less exciting place to stash cash. Despite the fact that the dollar was strong Friday against the euro, gold and silver still rallied on safe haven buying. Gold mining stocks were mixed Friday. Kinross Gold (KGC - Get Report) was adding 0.87% at $14.99 while Yamana Gold (AUY - Get Report) was down 1.30% to $12.12. Other gold stocks, Agnico-Eagle (AEM - Get Report) and Eldorado Gold (EGO - Get Report) were trading at $62.80 and $15.77, respectively.
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