Sharp gains for bullions

Gold gains on a weekly basis while silver slips

Gold futures rebounded on Friday, 23 March 2012 from sharp losses in the prior session, tacking on nearly $20 an ounce to finish higher for the week as a decline in the U.S. dollar fed a broad rally in commodity markets. Weakness in the dollar, which makes dollar-denominated commodities such as gold more attractive for holders of other currencies, contributed to gains as well as to strength across a broad spectrum of commodities on Friday.

Gold for April delivery rose $19.90, or 1.2%, to settle at $1,662.40 an ounce on the Comex division of the New York Mercantile Exchange, its highest settlement price since Monday. Prices ended 0.4%, or $6.60, higher for the week.



Silver led the percentage gains among the major metals. May silver futures rose 93 cents, or 3%, to end at $32.27 per ounce, but that was still down 1% for the week.

The dollar index, which weighs the strength of the dollar against a basket of six other currencies fell by almost 0.45% on Friday.

On Friday, the Commerce Department said sales of new homes dipped 1.6% in February to a seasonally adjusted 313,000, from a slightly downwardly revised 318,000 in January. Market had expected improving sales, at a 330,000 annual rate.