On Friday, gold (NYSEARCA:GLD) futures for June delivery increased $1.40 to settle at $1,642.80 per ounce, while silver (NYSEARCA:SLV) futures edged 13 cents lower to close at $31.65. For the week, gold prices declined 1.1 percent, while silver prices gained about .80 percent.
Both precious metals remain in a fairly tight range, despite deteriorating conditions in the eurozone. According to senior officials from the G-20, the International Monetary Fund is expected to announce a $400 billion increase in the fund’s resources in order to deal with a worsening debt crisis. On Friday, Spanish 10-year bond yields once again rose above 6 percent.
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The WSJ explains, “So far, IMF members have pledged $377 billion in additional funds, and pledges from several key emerging market economies, including China and Brazil, are seen pushing the total past the $400 billion goal, the officials said. Some of those countries may not specify their exact contribution until possibly as late as the G-20 leaders’ summit in June. G-20 financial ministers and central bankers are meeting on the sidelines of the IMF’s biannual meetings. The euro zone’s debt crisis remains the central focus of discussions, officials said.”
In afternoon trading, the SPDR Gold Trust (NYSEARCA:GLD) edged .05 percent higher, while the iShares Silver Trust (NYSEARCA:SLV) declined .19 percent. Miners once again lagged behind bullion prices. Gold miners (NYSEARCA:GDX) such as Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) declined 1.37 percent and .75 percent, respectively. Meanwhile, silver investments such as Silver Wheaton Corp. (NYSE:SLW) and Hecla Mining Co. (NYSE:HL) fell .30 percent and .24 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS
The article was first published by Wall St. Cheat Sheet and does not represent the views or opinions of International Business Times.