Gold Closes Week Higher, Settling at $1,628
On Friday, gold (NYSEARCA:GLD) futures for August delivery gained $8.50 to settle at $1,628.10 per ounce, while silver (NYSEARCA:SLV) futures increased 33 cents to close at $28.74. Gold closed higher for the past six trading sessions and posted a weekly gain of 2.3 percent.
Both precious metals bounced higher after chatter circled Wall Street that central banks around the globe are preparing to act late Thursday. “The central banks are preparing for coordinated action to provide liquidity,” said a senior G20 aide familiar with discussions among international financial diplomats. His statement was confirmed by several other G20 officials, according to Reuters.
The report was followed by the Bank of Japan saying that it would respond to unwelcome currency fluctuations, depending on the elections in Greece on Sunday. Furthermore, European Central Bank President Mario Draghi said in a conference on Friday that the central bank would continue its “crucial role” of providing liquidity to banks. It “is what we have done throughout the crisis, faithful to our mandate of maintaining price stability over the medium term, and this is what we will continue to do,” Draghi explained.
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) and iShares Silver Trust (NYSEARCA:SLV) both edged slightly higher. Gold miners (NYSEARCA:GDX) such as Goldcorp Inc. (NYSE:GG) and Newmont Mining Corp. (NYSE:NEM) fell 1.3 percent and .95 percent, respectively. Silver miners (NYSEARCA:SIL) such as Coeur d’Alene Mines (NYSE:CDE) and First Majestic (NYSE:AG) both dropped more than 1 percent.
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Disclosure: Long EXK, AG, HL, PHYS