Bullions register big losses

Upbeat US data dull its haven appeal Bullion metal prices ended lower on Friday, 16 February 2013. Gold futures settled sharply lower on Friday as upbeat U.S. economic data helped dull its haven appeal, prompting prices to briefly breach the $1,600-an-ounce support level. Gold futures for delivery in April dropped $26, or 1.6%, to settle at $1,609.50 an ounce on the Comex division of the New York Mercantile Exchange after touching a low at $1,596.70. prices shed 3.2% for the week. March futures for silver fell 50 cents, or 1.7%, to end at $29.85 an ounce on Friday. Prices lost 5.1% for the week. Comments from this weekend's G20 summit taking place in Russia have begun making the rounds. Earlier, Jens Weidmann of Germany's Bundesbank said the euro is not overvalued and the European Central Bank President Mario Draghi is not talking down the common currency. Meanwhile, Mr. Draghi said euro exchange rate is not a policy target for the central bank. Friday was heavy in terms of economic data. Contributing to the early strength was an upbeat January consumer sentiment survey from the University of Michigan. According to the preliminary reading, the survey rose to 76.3 from its prior reading of 73.8. Today's report surprised to the upside as market had expected the survey would climb to 73.5. Looking at the day's remaining economic data, January industrial production decreased 0.1%, which was worse than the 0.2% uptick that had been expected. Meanwhile, capacity utilization hit 79.1%, which was better than the 78.9% expected. February Empire Manufacturing Survey climbed to 10.0 from its prior reading of -7.8. The report was a positive surprise as market expected the survey to rise to 0.0. In the currency market on Friday, the dollar index, which weighs the strength of the dollar against a basket of six other currencies rose by 0.2%.