Gold News & Info

Source: Marketwatch

San Francisco— Silver on Friday settled at its highest price since March 2008, and gold futures came off their two-month high, posting losses as a drop in U.S. payrolls didn't turn out as steep as forecast and thus reduced demand for the precious metal as an investment safe haven. Silver overcame a weak start of the session to close in on $20 an ounce. Silver drew strength from both from the mild safe-haven buying present on Friday and from its industrial appeal. Gold for December delivery lost $2.30, or 0.2%, to $1,251.10 an ounce on the Comex division of the New York Mercantile Exchange. The metal pared some of its losses as the session progressed, and notched gains of 1% on the week. That's gold's fifth consecutive weekly gain. December silver added 28 cents, or 1.4%, to $19.95 an ounce. Silver has gained 3.8% this week. That's the highest close for a most-active silver contract since March 17, 2008, when silver closed at $20.22 an ounce.

On the week, silver soared 4.8%. That follows gains of nearly 6% the week before. Silver is a "hybrid" metal, appealing as a cheaper safe-haven alternative to gold. As a jobs report wasn't as dark as investors feared, silver also drew attention as an industrial metal on hopes the economic recovery remains on track. Silver buying was "coming from both sides," said Darin Newsom, a commodities analyst with DTN Telvent in Omaha. The run-up may have more legs, he added. "Certainly it seems like (silver) is gaining momentum." See full story.