Gold, Silver Higher to Close Out Eventful Week

Gold and silver were higher Friday morning as U.S. existing home sales were reported to have hit an 11-month high in December. However, ongoing talks among EU leaders and private holders of Greek government debt continue in Europe, casting a long shadow over the markets.

Spot gold was showing a gain just shy of 0.25%, bid at $1,660.70.40 per ounce with an ask price of $1,661.70. Spot gold traded as high as $1,663.80 and as low as $1,646.60. The London afternoon reference price fix came in at $1,653, $2 per ounce lower than Thursday’s reference price, according to Kitco market data.

Spot silver was up 0.72%, bid at $30.86 per ounce with an ask price of $30.96. The morning high as of time of writing was $31.01 and the low was $30.35. Friday’s reference price was set at $30.36 in the London a.m., 43 cents per ounce lower than yesterday’s price fix.

December existing home sales rose at a seasonally adjusted 5% monthly rate, to 4.61 million units, 3.6% higher than December 2010′s 4.45 million total. December’s increase carries on a recent upward trend that might signal a sustained recovery is under way, NAR chief economist Lawrence Yin commented.

Gold bullion prices were down 1.4% from the week’s high of $1,646 as of lunchtime Friday, according to BullionVault’s London Gold Market report. Trading in physical gold is winding down as China prepares for the long Chinese New Year holiday. The direction of the U.S. dollar-euro exchange rate is likely to set the tone for gold prices next week as physical demand from Asia will be all but absent given the Shanghai Gold Exchange will be closed, market participants commented.

Gold trusts were showing small gains, while the iShares Silver Trust (NYSE:SLV) was making a stronger move higher.

• The SPDR Gold Trust (NYSE:GLD) was showing slight gains of less than 0.1%.
• The iShares Gold Trust (NYSE:IAU) also was showing gains of less than 0.1%.
• The iShares Silver Trust was up about 1.3%.

Gold and silver mining ETFs were moving higher.

• The Market Vectors Gold Miners ETF (NYSE:GDX) was showing gains of nearly 0.7%.
• The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) was up around 0.45%.
• The Global X Silver Miners ETF (NYSE:SIL) was up more than 0.5%.

Gold mining shares were almost all higher, with Kinross Gold (NYSE:KGC) moving up sharply.

• Agnico-Eagle Mines (NYSE:AEM) was showing losses of some 0.36%.
• Barrick Gold (NYSE:ABX) was up nearly 0.6%.
• Eldorado Gold (NYSE:EGO) was unchanged.
• Goldcorp (NYSE:GG) was up around 0.8%.
• Kinross Gold was up about 1.9%.
• Newmont Mining (NYSE:NEM) was up nearly 0.5%.
• NovaGold Resources (AMEX:NG) was up around 0.9%.
• Yamana Gold (NYSE:AUY) was trading around 0.2% lower.

Silver mining shares were up, with Hecla Mining (NYSE:HL) showing strong gains.

• Coeur d’Alene Mines (NYSE:CDE) was moving higher, up between 1% and 1.25%.
• Hecla Mining was up more than 2.3%.
• Pan American Silver (NASDAQ:PAAS) was up nearly 1.6%.
• Silver Wheaton (NYSE:SLW) was showing gains of 1.1% and more.
• Silver Standard Resources (NASDAQ:SSRI) was up over 1%.

As of this writing, Andrew Burger did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVaultcontributed to this report.