Dip Buyers Send Gold Higher

GLDGold traders did some value hunting ahead of the long weekend, sending the yellow metal to a two-day winning streak ahead of the Memorial Day weekend. Comex gold for August delivery rose 0.7% to settle at $1,571.20 per troy ounce. Still, it must be noted U.S. gold futures fell 1.4% on the week as the U.S. dollar index continued its flirtation with 52-week highs. The Dollar Index rallied 1.3% for the week as investors continued to fret about the Euro Zone’s future.


CME Group Inc. cut the amount that speculators must keep on deposit for an initial account in gold futures on the Comex to $9,113 per contract from $10,125, Bloomberg reported. The major gold ETFs closed the week in solid fashion, but both finished with weekly losses. The SPDR Gold Shares (NYSE: GLD) and the iShares Gold Trust (NYSE: IAU) each added more than 0.8% on light volume. Holdings in GLD rose yesterday for a second day to 1,270.26 metric tons, according to Bloomberg.


Silver futures for July delivery added 0.8% to settle at $28.386 an ounce. That ran silver’s winning streak to two days as well. The iShares Silver Trust (NYSE: SLV) added two-thirds of a percent on volume that was less than half the daily average. SLV also endured a small weakly loss, but appears to be stabilizing around in $27 area.


Some analysts and traders believe there is still momentum in the gold and silver markets, a notion that might be reinforced by the fact support, particularly for gold at $1,525 has been tested and held firm. Now all these gold bugs need is for the yellow metal to decouple from the euro and see its safe haven status reborn.


Platinum and palladium futures also notched small gains to close the week, helping the ETFS Physical Platinum Shares (NYSE: PPLT) to a gain of 0.85%. The ETFS Physical Palladium Shares (NYSE: PALL) was higher by 0.83%, but volume was scant across both funds.


While volume was predictably weak across almost all markets today, that didn’t prevent the miners from adding to their weekly gains. The Market Vectors Gold Miners ETF (NYSE: GDX) was up almost two-thirds of a percent and has jumped more than 7% in the past week. The Global X Silver Miners ETF (NYSE: SIL) was up 0.2% and has tacked on more than 5% in the past week. The Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) jumped 2.7% on above average turnover and has also climbed more than 7% in the past week.

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