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NEW YORK (
Gold prices settled little changed on Friday, an end to a week that saw the yellow metal's largest drop in 30 years.
Gold for June delivery at the COMEX division of the CME added $3.10 to close at $1,395.60 an ounce. The
gold price traded as high as $1,424.70 and as low as $1,385.40 an ounce, while the spot price was ticking higher by $3.80, according to Kitco's gold index.
Gold had surged $25 in early morning trades, which marked the second session this week that the precious metal had
jumped more than $20 an ounce, but was shedding those gains by midday.
That early boost to prices came as traders were short covering their positions on news the German parliament had approved a 10 billion bailout to keep Cypriot banks solvent. Momentum faded by midday.
Uncertainties about Cyprus have repeatedly affected gold prices. The news
last month that the small island nation would levy a tax on all Cypriot savings accounts led many experts to believe that such a move would set a precedent for other financially troubled nations in the eurozone.
Gold failed to stage a meaningful rally on Cyprus uncertainties. On April 10, reports emerged that the European Commission was forcing the Cypriot government to liquidate $523 million of excess gold reserves.
Analysts said this was one of the triggers for the selloff that hit gold on April 12 and April 15.
Volatile trading on Friday came during the final session of a week that began with
COMEX gold losing $203.80, or 13% across two trading sessions.
Silver prices for May delivery closed down 29 cents to $22.96 an ounce, while the
U.S. dollar index was increasing 0.19% to $82.71.
Gold mining stocks were mixed on Friday. Shares of
Yamana Gold(AUY) were sliding 1.1%, while shares of
AngloGold Ashanti(AU) were rising 2.6%.
Among volume leaders,
Barrick Gold(ABX) was off 0.22%.
SPDR Gold Trust(GLD) was climbing 0.51% to $134.98 a share, while
iShares Gold Trust(IAU) was up 0.59% to $13.57 a share.
-- Written by Joe Deaux in New York.