Gold headed for the first weekly drop in three on concern that physical purchases may be showing as
investment holdings extend a drop. On the other hand Platinum and palladium headed for a third week
of continual gains.

In an immediate sense gold has not changed much, with $1,459.29 an ounce. Also in Singapore after
losing as much as 0.4% to $1,452.83. The price is 0.8% lower this week, and a decline today would be
fourth losing session.

Holdings in exchange traded products have lost 15% this year. Volumes for the benchmark cash contract
in Shanghai sank to 13,511kg according to Bloomberg. That’s the least since April 12, when bullion
entered a bear market. The price touched $1,321.95, lowest since January 2011.

Gold has a good run after prices collapsed and is consolidating in this $1,400-$1,480 region. A unit
of one of four funds in China created to buy bad debt from banks. The market needs both retail and
investment demand to come in strongly for prices to move back above $1,500.

Bullion traders and analysts are divided on whether physical demand will sustain the rebound in prices
as investors continue with sales from ETPs. Bloomberg staff expects prices to advance next week, while
10 forecast a drop and five were neutral.

Silver gained 0.2% to $23.789 an ounce, pairing a weekly drop. Platinum advanced 0.47% to $1,512.40
an ounce, while palladium dropped 0.3 percent to $707.55 an ounce.

Palladium deficit rose to the biggest in 11 years in 2012 as Strike action in South African mines curbed
supply and demand expanded. Platinum slipped into a shortage for the first time since 2004.