Gold and Silver Prices

Gold gained its second straight weekly gain as prices found support on Friday amid a weaker tone for the U.S. dollar while palladium hit its record peak.

"'The announcement of specific stimulus measures helped sentiment in China, which arguably is the global marginal consumer in automobiles, helping palladium climb quietly to new highs,' said Tai Wong, head of base and precious metals derivatives trading at BMO. 'There is (also) some concern that talk of possible scrap metal export ban in Russia could impact already extremely stretched palladium supplies,' Wong said.

"The price of the metal, used mainly in emissions-reducing catalysts for vehicles, has risen almost 90 percent from a trough in mid-August last year and is up about 24 percent so far this year.

"Meanwhile, gold rebounded following the previous session's over 1 percent decline, gaining 0.5 percent to $1,302.89 an ounce en route to its second straight weekly rise.

"Fuelling gold's advance, the dollar fell against its rivals, weighed down by weak manufacturing and factory output data, ahead of a Federal Reserve meeting next week expected to shed more light on the outlook for interest rates.

"For gold, whether it closes above or below $1,300 will help determine sentiment early next week before focus moves to the new Fed dot plot," BMO's Wong said.

"Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar. Also, in a potentially bearish development for the dollar, Chinese news agency Xinhua reported representatives from Beijing and Washington made substantive progress on trade over a call." ("Palladium soars to record, gold moves back up above $1,300," Reuters, CNBC, 03/15/19.)

Gold ended the week up $4.60, closing at $1,302.30. Silver ended the week down $0.05, closing at $15.31.