Yellow metal ends its week long losing streak

Gold gains 10% for the year while silver sheds 11%

Precious metal prices ended higher on Friday, 30 December 2011 at Comex. Gold ended its six session losing streak. The rally was likely a combination of short covering and a little bargain hunting. But precious metals registered losses on a weekly basis. With Friday's close, bullions ended mixed for the year.

Gold for February delivery ended higher by $25.9 or 1.7%, to end at $1,566.8 an ounce on the Comex division of the New York Mercantile Exchange on Friday. Prices shed 2.4% during the week. For the year, gold rose 10%. Gold lost 3.4% on a quarterly basis.



On Friday, silver prices for March delivery rose $0.60 or 2.2% to end at $27.92. For the week, silver prices dropped 4%. For the year, silver shed almost 11%.

Ahead of Friday's opening bell, Spain's new government unveiled austerity measures and said it expects a 2011 budget gap of nearly 8%. Investors drew limited cheer from reassurances made by German Finance Minister Wolfgang Schaeuble, who ruled out a breakup of the euro region in an interview published Friday.

In the currency market on Friday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies fell by almost 0.14%. For the year, the dollar index gained 1.6%.

Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa. But bullions have registered increase in prices despite strong dollar in recent times and vice versa