US gold futures ended lower on Friday as the market locked in profits following the previous sessions sharp rally, but strong investment flows into gold exchange-traded funds should put a floor under prices. Gold for April delivery settled down $2.60 at $956.20 an ounce on the COMEX division of the New York Mercantile Exchange.
GOLD: Ranged between $946.70 and $967.80, which marked the highest level since February 25. Investors took profits ahead of the weekend after April futures jumped 8 percent during the last two sessions following a plan by the Federal Reserve to buy government debt.
A near-term downward correction in gold and silver prices could be possible, and bullish factors may not be enough to prevent retracement - Tom Pawlicki, MF Global precious metals and energy analyst. A broad rebound of the dollar also triggered selling in gold.
Fundamental support from ETF inflows and strong technical outlook could be seen - Pawlicki. The worlds largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings rose to a record 1,103.29 tonnes as of March 19, up 18.96 tonnes, or 1.7 percent, from the previous day.
COMEX open interest up 8,502 at 388,333 lots as of March 19. The gold-oil ratio was at 18.24 on Friday, compared with 18.77 the previous session. COMEX estimated final electronic volume at 112,696 lots. Floor volume was not available due to a technical problem. Spot gold was at $952.90 an ounce at 2:56 pm EDT (1856 GMT), down 0.6 percent from its last quote in New York late Thursday.
SILVER: COMEX May silver rallied to a three-week high. It finished up 32.0 cents, or 2.4 percent, at $13.840 an ounce as volatile silver outperformed gold. Price weakness possible after May futures posted a nearly 14 percent increase in the past two sessions - traders. Ranged $13.410 to $13.860 - the loftiest level since February 25. COMEX estimated final electronic volume at 14,962 lots. Floor volume was not available due to a technical problem. Spot silver at $13.76 an ounce, up 1.4 percent from its Thursday finish.
PLATINUM: NYMEX April platinum ended down $7.60 at $1,114.20 an ounce on generally broad-based strength of precious metals. Spot platinum at $1,112.00 an ounce, down 0.9 percent from its previous close.
PALLADIUM: June palladium closed up $4.90, or 2.4 percent, at $210.90 an ounce, tracking platinums gains. Spot palladium at $205.50 an ounce, up 1 percent from its late Thursday New York quote.