Daily Gold Update

Source: Marketwatch

San Francisco— Midsession gains for silver were short-lived on Friday, with the metal extending this week�s rout in its worst five-day period since 1980. Gold futures settled higher, but under $1,500 an ounce. Silver for July delivery declined $2.63, or 1%, to $35.29 an ounce on the Comex division of the New York Mercantile Exchange. It had traded as high as $36.43 an ounce. The thinly traded front-month silver contract had its worst week since late March 1980. Silver for May delivery dropped 27% in the five-day period � its largest percent drop since that date. The most-active July contract also dropped 27% on the week. The week�s losses have shaved silver yearly gains to 14%.

Gold for June delivery rose $10.20, or 0.7%, to $1,491.60 an ounce. Gold lost 4.2% on the week, as it had settled Friday at a record $1,556.40 an ounce. Data from recent Commitment of Traders reports suggest that hedge funds and other large managed funds had left the silver trade long before the week�s rout. The yellow metal failed to settle above $1,500, but its ending just in the black gave investors some hope gains could resume next week, according to Adam Klopfenstein, a senior market strategist with Lind-Waldock in Chicago. �It gave investors hope we�re near the bottom for the near term,� he said. See full story.