Gold Steady As Rising Virus Cases Offset Vaccine Optimism
Spot gold was little changed at $1,876.40 an ounce by 0938 GMT but was down 3.7% for the week, heading for its worst weekly loss since September after the initial vaccine euphoria dented safe-haven investor demand.
U.S. gold futures were up 0.1% at $1,875.50.
“Gold has rebounded because the pandemic and the COVID-19 numbers globally are still rising. The market optimism towards the vaccine and risk-on sentiment has faded,” said Bank of China International analyst Xiao Fu.
“There’s only going to be a limited number of vaccines produced in the next three months, even in 2021, but there could be other companies coming up with vaccines as well. There could be other factors like mutation of the virus, the need to develop a new vaccine.”
U.S. Federal Reserve chairman Jay Powell and ECB President Christine Lagarde said the economy was still in for a tough time even if development of a potential vaccine was reason for some optimism further ahead.
The dollar index held steady but was on track for a 0.7% weekly gain.
In other precious metals, silver edged 0.1% higher to $24.24 an ounce, platinum rose 0.8% to $886.80 and palladium was up 0.7% at $2,348.43.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor