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 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 realizing a significant roll-out of a vaccine will take time while the need for relief is immediate.
· A Reuters tally showed novel coronavirus cases soared by more than 100% in 13 U.S. states in the past two weeks, while the global tally crossed 53 million, underpinning the need for more stimulus.
· “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.
· Top Democrats in the U.S. Congress urged renewed talks over a multitrillion-dollar coronavirus aid proposal, but a top Republican immediately rejected their approach as too expensive.
· 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.
Reference: CNBC
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