Gold Buoyed By Virus Woes, But Heads For Worst Week In Seven
Gold prices inched higher on Friday, as fears over the economic fallout from mounting cases of COVID19 overshadowed hopes of a vaccine, although the metal was on track for its worst weekly performance since lateSeptember.
- Last Updated: November 13, 2020, 10:15 IST
- FOLLOW US ON:
Gold prices inched higher on Friday, as fears over the economic fallout from mounting cases of COVID-19 overshadowed hopes of a vaccine, although the metal was on track for its worst weekly performance since late-September.
Spot gold rose 0.1% to $1,877.14 per ounce by 0325 GMT. For the week so far, it is down 3.8%.
U.S. gold futures gained 0.2% to $1,876.50.
“There has been a bit of shift in market psychology,” ED&F Man Capital Markets analyst Edward Meir said, adding that people are realising a significant roll-out of a vaccine will take time while the need for relief is immediate.
“The fact that there isn’t a stimulus coming seems to be keeping a lid on it (gold)… If Congress actually comes up with a limited package, that would be beneficial,” Meir said.
Meanwhile, the heads of Federal Reserve and the European Central Bank warned of the economic outlook remaining uncertain.
“Sentiment towards gold prices has eased significantly since they peaked in August, and prices would need a strong incremental bullish narrative to exceed the highs reached in 2020, which we struggle to find at this point,” Fitch Solutions wrote in a note.
Holdings in SPDR Gold Trust, world’s largest gold-backed exchange-traded fund, fell to 1,239.57 tonnes on Thursday, its lowest level since late-July.
The dollar index held steady but was on track for a 0.7% weekly gain.
Silver fell 0.2% to $24.18 per ounce. Platinum rose 0.3% to $882.18, while palladium was 0.9% higher at $2,351.77.
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