Gold had about as lackluster a day as possible on Friday, trapped between $880 and $890 from the far East clear through the Globex, with every attempt to break out in either direction quickly thwarted, and it finished where it started, at $885.80/oz., down 40 cents. For the week, gold dropped 3%.

Platinum plunged from early New York trading to mid-morning, turned abruptly and shot higher to just past the noon hour, then eased for the rest of the day, ending at $1089, down $14. For the week, platinum fell by a steep 7.4%.

Silver was down from Hong Kong to the mid-point of the London session, falling almost to the $12 mark, moved higher through most of the Comex, peaking at $12.80 just after noon, then slipped a bit through the Globex to close at $12.50/oz., up 13 cents. For the week, silver lost 3.1%. (Click here for charts)

While gold was dead flat, silver posted a gain on the day, presumably because of its role as an industrial metal in an economy that is supposedly on the mend.

“We are seeing some people abandoning gold in favor of equities as they seem to believe that the worst of the financial woe is over,” said Philip Gotthelf, of Equidex Brokerage Group in Closter, New Jersey.

However, longer term, “I am still bullish on gold,” Gotthelf added. “If the financial woes continue through June, the June contract will probably reach $1,000 an ounce. If the problems continue through July, we will see the October gold contract at $1,200 an ounce if not $1,500.”

There is still some overhang from the IMF gold sale threat, says investment biker Jim Rogers. “I own some gold, but I am not buying at the moment because the IMF, which is one of the largest owners of gold in the world, is desperate to sell its gold,” Rogers said. But although not buying, “I’m not selling my gold,” he added.

The deal is that the IMF “is trying to get permission from everybody,” Rogers said. “If and when they sell their gold, they may set a bottom. Who knows? It may go down to $700. They got a lot of gold to sell. If it does, I hope I’m brave enough and smart enough to buy more.”

But for the moment, with gold holding pretty well where it is despite the market negatives, analysts believe strong near-term support exists at the $860 level.

Source: Gold Flattens Out