Investing.com – Last week saw gold prices climb to a three-week high on Friday, as the combination of a broadly weaker U.S. dollar, ongoing worries over Greece’s sovereign debt and renewed concerns about unrest in the Middle East boosted the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery settled at USD1,537.45 a troy ounce by close of trade on Friday, climbing 1.55% over the week .
It earlier rose to USD1,539.45 a troy ounce, the highest price since May 4.
The U.S. dollar came under broad selling pressure on Friday after data showed that pending home sales plunged in April, while a separate report showed that consumer spending rose less-than-expected last month.
Revised data on Thursday showed that U.S. gross domestic product grew at a slower rate than forecast in the first quarter, rising at an annualized rate of 1.8%, disappointing expectations for a 2.1% increase.
The downbeat data diminished expectations for an imminent tightening in U.S. monetary policy, boosting the appeal of gold and other precious metals.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slumped 1.6% on the week to settle at 74.69 on Friday, the lowest level since May 10.
Precious metals, like other dollar-denominated commodities, can receive a boost when the greenback weakens, as it makes commodities cheaper for traders using other currencies.
Meanwhile, lingering concerns over Greece’s sovereign debt continued to support prices. On Friday, Greek leaders failed to reach a consensus on a plan to manage the country's economic crisis, heightening worries about the ability of the European Union to deal with member countries' financial woes.
Global financial service provider BNP Paribas said in a report Friday that, “The euro zone fiscal crisis and ongoing concerns about the U.S. situation should continue to support gold safe-haven demand for the time being.”
Elsewhere, markets focused on renewed worries over unrest in the Middle East and North Africa. Violence escalated in Yemen, threatening to tip the country into civil war, while world leaders reiterated calls for the departure of embattled Libyan leader Muammar Gaddafi.
Silver for July delivery settled at USD37.99 a troy ounce by close of trade on Friday, surging 7.85% over the week, its biggest weekly gain since late April.
Also Friday, the U.S. Mint announced that its San Francisco facility will start producing American Eagle silver coins to meet demand at “unprecedented high levels.”
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery settled at USD1,537.45 a troy ounce by close of trade on Friday, climbing 1.55% over the week .
It earlier rose to USD1,539.45 a troy ounce, the highest price since May 4.
The U.S. dollar came under broad selling pressure on Friday after data showed that pending home sales plunged in April, while a separate report showed that consumer spending rose less-than-expected last month.
Revised data on Thursday showed that U.S. gross domestic product grew at a slower rate than forecast in the first quarter, rising at an annualized rate of 1.8%, disappointing expectations for a 2.1% increase.
The downbeat data diminished expectations for an imminent tightening in U.S. monetary policy, boosting the appeal of gold and other precious metals.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, slumped 1.6% on the week to settle at 74.69 on Friday, the lowest level since May 10.
Precious metals, like other dollar-denominated commodities, can receive a boost when the greenback weakens, as it makes commodities cheaper for traders using other currencies.
Meanwhile, lingering concerns over Greece’s sovereign debt continued to support prices. On Friday, Greek leaders failed to reach a consensus on a plan to manage the country's economic crisis, heightening worries about the ability of the European Union to deal with member countries' financial woes.
Global financial service provider BNP Paribas said in a report Friday that, “The euro zone fiscal crisis and ongoing concerns about the U.S. situation should continue to support gold safe-haven demand for the time being.”
Elsewhere, markets focused on renewed worries over unrest in the Middle East and North Africa. Violence escalated in Yemen, threatening to tip the country into civil war, while world leaders reiterated calls for the departure of embattled Libyan leader Muammar Gaddafi.
Silver for July delivery settled at USD37.99 a troy ounce by close of trade on Friday, surging 7.85% over the week, its biggest weekly gain since late April.
Also Friday, the U.S. Mint announced that its San Francisco facility will start producing American Eagle silver coins to meet demand at “unprecedented high levels.”