Gold, Silver Pare Weekly Losses, XAU Snaps 5-Week Win Streak

 

Gold and silver futures rallied Friday, but still managed to each post their third weekly loss in the last four weeks.

COMEX gold futures, per the December 2011 contract, surged $33.30, or 1.9%, to settle at $1,814.70 per ounce. However, the yellow metal still closed the week in negative territory, by $44.80, or 2.4%.

Silver futures for December 2011 delivery on the COMEX jumped $1.04, or 2.6%, to $40.54 per ounce on Friday, but finished the week lower by $1.08, or 2.7%.

Gold and silver equities advanced alongside precious metals on Friday, with the Philadelphia Gold & Silver Index (XAU) rising 1.2% 217.74 this afternoon.  With today’s rally, the XAU cut its weekly decline to 2.5% and is eyeing its first weekly loss in six, since August 1-5.

Weakness in gold and silver was fueled by liquidation in precious metals amid a substantial rebound in U.S. and European equity markets this past week.  Investors moved into cyclically-sensitive stocks and commodities as risk aversion stemming from the euro zone sovereign debt crisis subsided, at least modestly.