Bright day for precious metals

Gold and silver gain 6.7% and 16% respectively during first quarter Comex gold futures rallied on Friday, 30 March 2012 breaking a three-day losing streak. Gold futures for June delivery rose $17, or 1%, to end the day at $1,671.90 an ounce on the Comex division of the New York Mercantile Exchange. Support on Friday also came from a lower dollar and as buyers came back to the gold market after the recent selloff. That brought quarterly gains of gold to 6.7% in Q1, which follows a 3.4% decline in the fourth quarter of 2011 and yearly gains of 10%. On the month, gold declined 2.3%, as it ended February at $1,711.30 an ounce. May silver rose 50 cents, or 1.5%, to settle at $32.48 an ounce on Friday. On the quarter, silver jumped 16%, which follows three quarters of losses in 2011 and yearly losses of 9.8%. On the month, silver declined 6%. The dollar index, which compares the U.S. unit to a basket of six currencies, dropped by 0.2%. The euro rose versus the dollar after euro-zone finance ministers on Friday agreed to temporarily raise the lending capacity of the region's rescue funds to 700 billion euros ($934 billion) from €500 billion. Friday's economic reports had the Commerce Department reporting spending rose 0.8% in February as income climbed 0.2%. And, the University of Michigan and Thomson Reuters said consumer sentiment in March climbed to its highest level in more than a year, as Americans gained more confidence about their economic conditions. Separately, a read on business activity in the Chicago area decelerated in March, but remained above 60% for a fifth consecutive month.