Gold slogged through another full day without any strong moves on Friday, as buyers and sellers once again found themselves in near-balance and kept the metal stuck inside a very tight $7 range that had it finishing near the high end at $941.60/oz., down $5.60. For the week, gold was up 3.3%.

Platinum peaked in Hong Kong at $1070, drifted lower through most of the Comex, then rallied a bit at the end of the day to end at $1061/oz., down $7. For the week, platinum was the big winner, at 6% higher.

Silver fared better than gold, falling as low as $13.25 in the first hour in New York, but then rallying strongly straight through the rest of the day and closing at $13.67/oz., up 17 cents. For the week, silver tacked on 4.2%. (Click here for charts)

It was a mixed day for the precious metals, with gold and platinum continuing to consolidate their positions, but silver showing surprisingly more strength than its more lustrous sisters.

Gold’s performance was particularly disappointing, as it should have received solid support from both rising oil prices and a declining dollar, but didn’t.

The Hightower Report’s take on the day’s action: “Given that the gold market managed a low to high pulse this week of almost $65.00 an ounce it wasn’t surprising to see prices forge at least a modest correction setback early Friday morning. While some weakness in the Dollar might have provided some support to gold in the past, the Dollar action today didn’t seem to be of that much interest to the trade. It certainly seemed like the anticipated passage of the US stimulus package, the potential for US mortgage assistance and the weekend G7 meeting all served to knock down the flight to quality interest in the gold market. In fact, talk of coordinated G7 easing is usually something that serves to tamp down macro economic anxiety.”

Meanwhile, SPDR Gold Trust (NYSE:GLD), the largest bullion-backed ETF, continued its gangbusters accumulation of metal. GLD’s holdings jumped again, as it pushes toward 1,000 metric tons. The ETF’s vaults now contain 970.57 tons, or 31.2 million ounces! It rose 1.125 million ounces in one day and has increased nearly 5.8 million ounces in a month.

With all of that activity, some analysts are beginning to wonder where all that bullion is coming from. It’s not from the Comex nor, apparently, from central bank sales. Mints across the globe are stamping out coins with every ounce they can lay hands on. So, where are they getting it? We’d love to know. Anyone with an answer, please drop us a line at dr@caseyresearch.com. Thanks.

Source: Gold Hit With Mild Profit Taking