Daily Gold Update

Source: Marketwatch

San Francisco— Gold futures climbed Friday to close at a record $1,486 an ounce, up 0.8% for the week, with silver hitting its highest level in over three decades, as inflation concerns buoyed investment demand for the precious metals. �Gold prices remain supported on the back of its appeal as a hedge against inflation, amidst emerging inflationary concerns in the U.S., Europe and China,� analysts at ICICI Bank wrote in a note to clients. Gold futures for June delivery rose $13.60, or 0.9%, to close at $1,486 an ounce on the Comex division of the New York Mercantile Exchange. It ended the week with a gain of 0.8%. The day�s settlement price beat out the previous record close of $1,474.10 an ounce seen a week ago. In electronic trading on Globex shortly after the close of regular trading, June gold tacked on another $3 to $1,489.

Silver also surged Friday, with the May contract adding 91 cents, or 2.2%, to end at $42.57 an ounce in New York � the metal�s highest level in 31 years. Silver prices have rallied almost 38% year to date. They marked a gain of 4.8% for the week after closing last Friday at $40.61. �We view upside inflation risks as more likely than positive growth shocks in the U.S.,� analysts at Deutsche Bank wrote in a weekly report issued Friday. �This should mean that when the [Federal Reserve] eventually tightens monetary policy, it will not derail the rally in precious metals.� See full story.