Gold moved higher Friday as the Euro cut its losses and as sources learned that Spain will soon request assistance for its ailing banks.
However, for the week Gold declined because investors currently don’t see monetary easing from the Federal Reserve or European Central Bank.
This week the ECB did not cut rates nor implement any new crisis fighting measures. Furthermore, yesterday Fed Chairman Ben Bernanke said it was too soon for another round of easing. We will hear more after the Fed meeting on June 19-20.
It should be noted that Gold gained along with the US Dollar. The negative correlation between the two is the weakest it has been in six months. Silver also recovered intraday but finished down by pennies.
Heading into next week Gold has support at $1565 and resistance at $1620-$1630.