US gold futures finished 2010 strong, with gains of more than 1.0 percent on Friday, that contributed to its 30 percent advance this year, its biggest increase since 2007, driven higher by economic uncertainty and accommodative monetary policies.
GOLD: Benchmark COMEX February gold futures closed 2010 at $1,421.40 an ounce, up $15.50 per ounce, or 1.1 percent on the COMEX division of the NYMEX. Higher range ran from $1,404.60 to $1,422.0 an ounce. For the year, gold advanced 29.7 percent, its biggest annual gain in three years, marking a record of 10 straight yearly increases.
Gold posted strong gains in thin volume, spurred by the dollar's broad decline against a basket of currencies, as investors closed their books on 2010. But the US currency still managed to end a volatile year a bit firmer. Traders and analysts expect gold to break above $1,500 in 2011, particularly if the dollar extends its decline, the US economy remains unable to generate enough jobs to lower unemployment and Europe's debt crisis is not diffused.
"As for next year, I'm thinking gold could trade firmly over the next quarter or two. And then have the potential to see some weakness in the second half of the year," said Tom Pawlicki, precious metals analyst at MF GLOBAL in Chicago. COMEX gold volume came to 48,628 lots, an exceptionally light tally. Spot gold moved up to $1,418.85 an ounce by 2:22 EST (1905 GMT), up 1.06 percent from the previous close at $1,403.99, and a 29.4 percent advance over 2009. Bullion prices were on track for their fifth straight month of gains, the longest stretch of monthly increases since late 2001.
SILVER: COMEX March silver ended the year as one of the biggest gainers in the Jeffries CRB index with a rise on Friday of 42.40 cents per ounce, or 1.39 percent at $30.9370 an ounce. The jump in benchmark silver futures led to an increase of nearly 84 percent for 2010.
Investors bought the white metal along with other precious metals in safe-haven buying. COMEX estimated silver futures volume at 16,152 lots, well below its average. Spot silver swept higher for an 83 percent gain on the year. It was the second-best performer among precious metals, and reached a 30-year peak of $30.92.
PLATINUM: NYMEX April platinum settled 2010 at $1,778.20 an ounce, about 21 percent over 2009's settlement when the active contract ended at $1,471.0 on the NYMEX. April platinum prices finished on Friday with healthy gains of 1.65 percent, or $28.90 per ounce. Both PGMs advanced with other precious metals on the final day of 2010, as investors sought gains through alternative assets. Spot platinum rose to $1,767.50 an ounce, up 20 percent on the year.
PALLADIUM: NYMEX March palladium finished the year at $803.30 an ounce, a 96.50 percent surge over 2009's settlement of $408.85 on the NYMEX. US palladium futures added $17.10 an ounce, to close 2.18 percent higher on Friday. Spot palladium surged to a nine-year high at $799.50 an ounce.
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