Money and Metals

The Associated Press reports on currencies. "The dollar rebounded against a nearly record-high euro Friday on expectations that the Group of Seven would maintain its position on addressing worldwide economic imbalances. The euro bought $1.3511 in afternoon trading after climbing as high as $1.3547 earlier in the session; its highest level since January 2005."

"That compared with the $1.3480 it bought in New York late Thursday, and was about one cent short of its all-time high from December 2004 of $1.3667."

"The dollar bounced back on expectations that the G-7 finance officials' communique Friday would not propose continued weakness to stabilize global trade and account imbalances. Word from an Italian representative, though, that yen carry-trading would enter the discussions prompted some dollar selling, according to Michael Woolfolk, senior currency strategist at the Bank of New York."

"The dollar also lost ground against the British pound, which rose to $1.9825 from $1.9783, while strengthening against Japan's currency to 119.25 yen from 119.06 yen."

"The euro slipped slightly after the release of data showing that U.S. wholesale prices increased by 1 percent in March, although, with volatile energy and food prices removed, other prices were flat. Evidence that inflation hasn't spread through a wider range of goods might put less pressure on the Fed to raise rates."

"Separately, the Commerce Department said the U.S. trade deficit lessened for a second month, with oil imports down sharply and the politically sensitive deficit with China narrowing to its lowest point in nine months."

"In other trading, the dollar bought 1.2157 Swiss francs, down from 1.2167 late Thursday, and 1.1384 Canadian dollars, up from 1.1348."

From MarketWatch. "Gold futures rose sharply Friday, as the dollar fell to a more than two-year low versus the euro, boosting demand for the precious metal. Gold for June delivery closed up $10.20 at $689.90 an ounce on the New York Mercantile Exchange. The contract gained 1.5% on the week."

"'Gold finally made a successful attempt at overcoming resistance at the $682/$685 level, after the US dollar sank to a 24-month low against the euro and oil prices firmed,' said Jon Nadler, analyst at Kitco Bullion Dealers. 'A combination of adverse factors keeps gnawing at the US currency and may leave the Fed in the unwelcome predicament of having to boost rates to throw out a life-preserver to the greenback,' Nadler said."

"Weakness in the dollar, firmer crude-oil prices and strong physical demand for gold have supported gold prices, said James Moore, metals analyst at TheBullionDesk.com.
Crude-oil futures were flat Friday, having surged 3% in the previous session, drawing support from U.S. refinery outages and concerns over declining OPEC production."

"Other metals prices also gained. May silver closed up 23.5 cents at $14.090 an ounce, gaining 2.5% on the week. June palladium rose $6.75 at $381.05 an ounce, gaining 6.9% on the week, and July platinum rose $6.90 at $1,286.40 an ounce, gaining 1.6% on the week."