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Gold rises as dollar weakens, eyes second weekly gain

· Gold prices rose on Friday, en route to a second straight weekly gain, as the dollar weakened and on concerns about economic recovery from the coronavirus crisis.

· Spot gold rose 0.6% to $1,953.72 per ounce, and was up 0.6% so far this week. U.S. gold futures settled up 0.6% at $1,962.10.

· “We’re seeing a slightly weaker dollar, although we’re still in a bit of range here. Gold prices should do better because the dollar will continue to weaken,” said Edward Meir, an analyst at ED&F Man Capital Markets.

“The path of least resistance is upwards because of the Fed, all the stimulus coming from global central banks (and) more fiscal stimulus if there’s deal in Washington; all the tailwinds are pointing in the direction for higher prices.”

· The dollar fell 0.2% against rivals, making gold cheaper for holders of other currencies. The U.S. Federal Reserve vowed on Wednesday to keep interest rates near zero for a long time, while the United States considered a proposed $1.5 trillion coronavirus aid bill.

· Lower interest rates, which reduce the opportunity cost of holding non-yielding bullion, and widespread stimulus measures have helped gold gain over 28% this year as it is seen as a hedge against inflation.

· “We believe the balance of risks remains to the upside for gold and expect prices to average $2,000 per ounce in Q4-2020 and $2,125 next year,” said Standard Chartered analyst Suki Cooper.

“Barring short-term corrections, negative real yields and a weaker dollar, alongside the unprecedented stimulus, create a favourable macro environment for gold and are likely to be the key price drivers over the coming months.”

· Elsewhere, silver fell 0.5% to $26.97 per ounce, while platinum dropped 0.8% to $932.80 and palladium rose 0.3% to $2,343.65.

· CORONAVIRUS UPDATES:

Global cases: More than 31.22 million

Global deaths: At least 964,761

U.S. cases: More than 7.00 million (+33,265)

U.S. deaths: At least 204,118 (+294)

India cases: More than 5.48 million (+87,382)

India deaths: At least 87,909 (+1,135)

Brazil cases: More than 4.54 million (+16,282)

Brazil deaths: At least 136,895 (+330)

· Coronavirus in U.S. Congress: 18 members have tested or been presumed positive

At least 18 members of the U.S. House of Representatives and Senate - nine Republicans and seven Democrats - have tested positive or are presumed to have had COVID-19, with Representative Jahana Hayes becoming the latest on Sunday.

· The coronavirus pandemic will intensify competition for white-collar jobs, says Singapore minister

Competition for white-collar jobs will become more intense after the coronavirus pandemic showed that a lot of work can be done over the internet, Singapore’s Minister for Trade and Industry Chan Chun Sing said on Thursday.

· Fed's Kashkari says pandemic aid was also 'banking bailout'

U.S. banks got their second bailout in little more than a decade when Congress cut checks to millions of Americans to help them through the coronavirus crisis, Minneapolis Federal Reserve President Neel Kashkari said on Friday, calling for a new round of reforms to prevent it from happening again.

· Fiscal fizzle saps U.S. economic recovery, a possible boost to Biden

This week’s economic data offers fresh hints that the U.S. recovery will slow without new federal aid, a possible blow to President Donald Trump’s reelection bid, especially since any new spending before the Nov. 3presidential election seems unlikely.

Meanwhile, a Fed survey released Friday showed that American households were better off financially in July than they were in the first months of the crisis, in large part because of their access to government aid.

Goldman Sachs economists said they would likely boost their fourth-quarter GDP forecast if Biden wins and Democrats retake the U.S. Senate, because Democrats would approve a spending package larger than the $1trillion Goldman has penciled in.

Despite overall concerns about the strength of the recovery, and millions out of work since the pandemic hit, a recent Reuters/Ipsos poll found that 45% of U.S. adults think Trump is the better candidate for rebuilding the economy. That’s compared with 36% who say Biden would be better.

But the same poll showed that likely voters were much more concerned about a candidate’s ability to fight the coronavirus and restore trust in government, both issues on which voters gave Biden a lead.

· Trump agrees to TikTok deal with Oracle and Walmart, allowing app’s U.S. operations to continue

President Donald Trump said Saturday he has approved a deal in principle in which Oracle and Walmart will partner with the viral video-sharing app TikTok in the U.S., allowing the popular app to avoid a shutdown.

“I have given the deal my blessing — if they get it done that’s great, if they don’t that’s okay too,” Trump told reporters on the White House South Lawn before departing for North Carolina. “I approved the deal in concept.”

The U.S. Department of Commerce announced it would delay the prohibition of U.S. transactions with TikTok until next Sunday.

· Trump administration to impose sweeping sanctions tied to Iran’s weapons programs

The Trump administration is set to announce a slew of fresh sanctions and additional measures in support of Washington’s maximum pressure campaign against the Iranian regime.

As early as Monday, the United States could sanction more than two dozen people and entities involved in Iran’s nuclear, ballistic missile and conventional arms programs, a senior U.S. official told Reuters.

· Italy sees GDP down 9% this year, rising more than 5% in 2021 - sources

Italy expects its coronavirus-hit economy to grow by more than 5% next year after shrinking 9% in 2020, two government sources told Reuters on Sunday.

In April, the government of the anti-establishment 5-Star Movement and the centre-left PD party forecast a fall in gross domestic product of 8% this year and a 2021 rebound of 4.7%.

The new forecasts, along with public finance projections, will be published next week, providing the framework for the 2021 budget which must be presented to the European Commission in mid-October.

· China's economy remains resilient despite external risks, says Xi

China’s economy remains resilient and there are ample policy tools at Beijing’s disposal despite rising external risks, President Xi Jinping said in remarks published on Saturday.

The world’s second-largest economy has steadily recovered from a virus-induced slump, but analysts say policymakers face a tough job to maintain stable expansion over the next several years to turn China into a high-income nation.