New York, May 18th (TradersHuddle.com) - It may not seem like much after the drubbing gold has recently endured, but the yellow metal gained ground again Friday, running to a small two-day winning streak in the process. Comex gold for June delivery climbed $17, or 1.1%, to settle at $1,591.90 a troy ounce. Coupled with Thursday's big upside move, gold futures actually gained half a percent for the week despite trading down to 10-month lows as recently as Wednesday.
A rallying U.S. dollar at the hands of Europe's ongoing sovereign debt crisis has sent traders running for cover with only the dollar as their primary destination, but gold was bought and bought heavily Thursday as traders started seeing value in the yellow metal following a precipitous decline. Follow through was tepid today, but at this point, gains are simply much better than losses for bullion.
The iShares Gold Trust (NYSE: IAU) added almost 1.2% and appears to have put in a firm floor at $15. The SPDR Gold Shares (NYSE: GLD) climbed 1.15% and volume was strong in both funds, though much more so in IAU.
Traders also gobbled silver up today, as the line in the in sand for the iShares Silver Trust (NYSE: SLV) appears to be $26. After flirting with that area, SLV has bounced higher in the past two sessions. SLV gained another 2% today, but still closed lower for the week.
According to Kitco News, traders are looking for gold to trade higher next week. In the Kitco News Gold Survey, out of 33 participants, 23 responded this week. Of those 23 participants, 21 see prices up, while two see prices down, and zero are neutral.
The other precious metals are joining in on the good cheer. Platinum closed higher once again and that helped the ETFS Physical Platinum Shares (NYSE: PPLT) to a gain of 0.2% on above average turnover. On light volume, the ETFS Physical Palladium Shares (NYSE: PALL) jumped 0.15%. To PALL's credit, the ETF was able to scratch its way to a positive finish for the week.
It has been said before and it is dangerous to say again, but maybe, just maybe the miners are showing some signs of life. Two days doesn't make a new trend, but it's worth noting the Global X Silver Miners ETF (NYSE: SIL) added half a percent on volume that was almost double the daily average. On volume that was better than 50% higher than usual, the Market Vectors Gold Miners ETF (NYSE: GDX) gained two-thirds of a percent while the Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) clawed its way to a higher finish. In the case of GDXJ in particular, traders will take any upside action they can get these days.