Bullions rise for third straight day

Prices register small weekly gains too Bullion metal prices rose on Friday, 27 July 2012 at Comex extending gains for third straight day after France and Germany pledged to support for the euro, pressuring the U.S. dollar. Prices have incresaed this week boosted by comments from European Central Bank officials. Gold for August delivery rose $2.90, or 0.2%, to settle at $1,618 an ounce on the Comex division of the New York Mercantile Exchange on Friday. For the week, gold gained 2.2%. Prices moved well off highs, however, as the session progressed. Gold earlier traded as high as $1,628.60 an ounce. September silver gained 5 cents, or 0.2%, to end at $27.50 an ounce on Friday. Silver rose 0.7% on the week. In the currency market on Friday, the U.S. dollar index, which weighs the strength of the dollar against a basket of six other currencies fell by 0.4%. 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. Among economic data expected for the day on Friday, advanced GDP for the second quarter suggested the economy grew at a 1.5% rate when an increase of 1.2% had been expected. The first quarter chain deflator reportedly increased by 1.6%, which is what had been anticipated.