Gold Posts 2.0% Weekly Gain, Silver Surges 7.3%

Gold and silver futures climbed Friday amid a broad-based rally in precious metals and a tepid move in the U.S. dollar.

COMEX gold futures – per the February contract – settled higher by $9.50, or 0.6%, at $1,664.00 per ounce despite earlier sliding to $1,645.20 per ounce.  In doing so, the yellow metal posted a weekly gain of 2.0%, advanced for the third consecutive week, and extended its year-to-date gain to 6.4%.  The U.S. dollar inched lower by 0.1% against a basket of foreign currencies this afternoon.

Silver futures fared even better, with the COMEX February contract finishing the day up $1.17, or 3.8%, at $31.675 per ounce.  For the week, gold’s sister precious metal surged 7.3% – bringing its weekly win streak to three as well – and extended its advance in 2012 to 13.1%.

Despite the strength in precious metals, gold and silver stocks continued to languish.  The Philadelphia Gold & Silver Index (XAU) was lower by 0.8% at 186.57 in afternoon trading, bringing its weekly decline to 2.9% and snapping a two-week winning streak.

Among gold producers on Friday, Randgold Resources (GOLD) dropped 1.0% to $108.73 per share and Newmont Mining (NEM) retreated 0.9% to $59.09 per share.  While most silver shares actually moved higher (the XAU is heavily weighted toward gold companies rather than silver ones), Coeur d’Alene Mines (CDE) dipped 0.1% to $26.29 per share.

Other precious metals were mixed on Friday, as platinum futures rose 0.9% to $1,532.30 per ounce while palladium inched lower by 0.4% to $675.70 per ounce.  As for cyclical commodities, copper fell 1.5% to $3.745 per pound to cut its weekly rise to 3.0%.  Crude oil futures slid 1.9% to $98.46 per barrel, which turned black gold negative by 0.2% this week.