Silver is trading at $28.19/oz, €22.94/oz and £18.03/oz. Platinum is trading at $1,460.50/oz, palladium at $587.30/oz and rhodium at $1,025/oz.

Gold rose $9.90 or 0.62% in New York yesterday and closed at $1,614.00/oz. Silver surged to a high of $28.275 and finished with a gain of 1.37%.

Gold continued gains on Friday receiving a boost from Angela Merkel's comments saying she supported 'Super' Mario Draghi's pledge "to do whatever it takes" to save the euro.

While this sentiment lifted markets and some investors hope ECB action is sooner rather than later - it is also creates the risk of currency debasement and could lead to further falls in the euro.

At the beginning of August, the European Central Bank said that it might buy Spanish bonds if the government first applied for the European Financial Stability Facility (EFSF) support. The ECB has said that specific committees within the bank would design the appropriate mechanisms for the bond purchases in the coming weeks, suggesting a possible green light within a few weeks.

EFSF bond purchases require the vote of all member states, including ratification by the German Parliament. Many investors are waiting on the sidelines until more concrete news from the ECB and US Fed is conveyed.

Barrick Gold Corp, the world's top gold miner, is currently in negotiations with China Gold Corp, China's top gold producer, about selling part or all of its holdings in its African business. This shows how China is eager to secure a greater source of global supply in order to be able to supply the voracious Chinese market.

Mark O'Byrne, executive director of GoldCore, talked about the outlook for gold prices and the merits of purchasing the physical metal over derivative products with Linzie Janis on Bloomberg Television's "Countdown" today.

He warned regarding the various "gold ponzi schemes" that have come to light recently and advocated owning physical gold and if storing to own gold in an allocated or segregated manner.