US gold futures climb, but lose 2.5% over the week

Gold futures on the COMEX division of the New York Mercantile Exchange ended higher on Friday, with prices recouping a portion of the hefty 3.4 percent drop it witnessed a day earlier. The most active gold contract for February delivery rose 10.1 dollars, or 0.85 percent, to settle at 1,203.7 dollars per ounce. For the week, gold prices closed 2.5 percent lower. According to market analysts, the region below 1,200 dollars is where investors' buying may be visible, especially from the jewelry sector and industrial users, which provides technical support to gold trading on the day. However, there is still a potential for gold to go lower as the market expects further curbs on quantitative easing. Goldman Sachs Group Inc. said gold's decline isn't over as it heads for the biggest annual drop since 1981. Gold futures fell 3. 4 percent Thursday to 1,193.6 dollars. Goldman Sachs said that gold would drop to 1,050 dollars by the end of next year. The U.S. Federal Reserve announced on Dec. 18 it will cut monthly asset purchases to 75 billion dollars from 85 billion dollars. Gold futures prices have lost roughly 28 percent for the year as of Friday's close, ready for their first annual loss in 13 years. Silver for March delivery rose 26.7 cents, or 1.39 percent, to close at 19.453 dollars per ounce.