Gold futures ended slightly lower but held above $950 an ounce on Friday as investors took profits, but inflation concerns amid economic optimism may continue to stir investment demand. MCX gold settled marginally up on MCX on Saturday.

Silver futures rose in line with the expectation of better investment demand. It witnessed an increase of 0.76 and 0.13 percent on MCX and COMEX respectively.

The European Central Bank says Italy's revised tax on notional capital gains in gold reserves is still not acceptable as it damages the Bank of Italy's independence, raising the possibility of another revision.

U. S. consumer confidence waned in late July to the lowest reading since April on growing pessimism about the long-term economic outlook, the Reuters/University of Michigan Surveys of Consumers showed.

Avocet Mining said that Q1 gold production was in line with guidance. It reported gold production of 27,563 ounces, 1 percent up on previous quarter.

On Friday, ETFS Silver Trust, the U. S. unit of London-based ETF Securities, on Friday launched shares backed by physical silver bullion on the New York Stock Exchange. ETFS Silver Trust is expected to hold assets of more than $1 billion over the next six to 12 months, said a senior company official.

Gold is looking fundamentally weak as the physical demand remains slack. Adding to that, we believe Gold prices can’t just keep following weaker dollar and the rise in crude oil. The fundamentals should have an impact on prices at some point of time. Silver on the other hand looks relatively strong. We continue to recommend buying in silver at dips.