New York gold futures fell 1 percent on Friday, finishing the week on a weak note as a dollar rise dampened investor sentiment, but palladium rose sharply on strong investment demand related to the US exchange traded funds. Gold for February delivery settles down $12.50, or 1.1 percent, at $1,130.50 an ounce on the COMEX division of the New York Mercantile Exchange.
GOLD: Range from $1,126.50 to $1,146. Gold pressured as dollar rose, helped by data showing a rise in manufacturing and stable consumer price inflation, suggesting price increases are not enough to prompt an US interest rate hike.
Gold ended week lower as news of China's tightening bank-lending requirement on Tuesday curbed economic optimism, decreasing gold's inflation hedge appeal. CFTC proposals to discuss possible position limits on metal futures and options contracts dampened buyers enthusiasm - George Gero at RBC. On Thursday, gold buying increased in a knee-jerk reaction ahead of possible future measures by the CFTC to rein in speculation in metals trading.
CFTC says the agency's planned meeting in early March to discuss possible position limits on metal futures and options contracts will focus on gold and silver contracts. Gold/oil ratio at 14.53 against previous session's 14.43. COMEX estimated 1 pm volume at 155,329 lots. Spot gold was at $1,130.34 an ounce at 1:52 pm EST (1852 GMT), against the previous session's late quote of $1,142.15.
SILVER: March silver ends down 22.8 cents, or 1.2 percent, at $18.427 an ounce, tagging gold. Range from $18.400 to $18.690. COMEX estimated 1 pm volume at 22,829 lots. Spot silver at $18.40 an ounce, versus the previous session's late quote at $18.64 an ounce.
PLATINUM: NYMEX April platinum finishes down $8.70 at $1,596.10 an ounce on profit taking after sharp gains due to the US platinum and palladium exchange traded funds. Spot platinum was at $1,594 an ounce.
PALLADIUM: March palladium closes up $4.70, or 1.1 percent, at $447.75 an ounce on investment demand. Spot palladium was at $449.50 an ounce.