Advertisement

  • News
  • Columns
  • Interviews
  • BW Communities
  • Events
  • BW TV
  • Subscribe to Print
  • Editorial Calendar 19-20
BW Businessworld

Gold Set For Weekly Gain As US Stimulus Hopes Dent Dollar

Spot gold rose 0.1% to $1,842.83 per ounce by 0717 GMT. U.S. gold futures were up 0.3% at $1,846.70.

Photo Credit :

1601280815_k9WNpz_2020_09_28T044315Z_1_LYNXMPEG8R09T_RTROPTP_4_HEALTH_CORONAVIRUS_GOLD_TRADING.JPG

Gold prices firmed on Friday and were set for their first weekly gain in four as the dollar weakened on hopes of more U.S. stimulus, while investors awaited U.S. non-farm payrolls data due later in the day.

Spot gold rose 0.1% to $1,842.83 per ounce by 0717 GMT. U.S. gold futures were up 0.3% at $1,846.70.

Gold has added about 3% so far this week.

"Upward momentum (in gold) is strong partly because of a weakening dollar and prices have been technically oversold," said Margaret Yang, a strategist at DailyFX, adding that the metal could find strong support at $1,800 and $1,750.

Yang, however, warned there could be downside risks if economic recovery quickens and inflation overshoots, prompting the U.S. Federal Reserve to hold back on monetary stimulus that could strengthen the dollar.

The U.S. dollar was on course for its worst week since early November, making gold cheaper for other currency holders.

A bipartisan, $908 billion coronavirus aid plan gained momentum in the U.S. Congress on Thursday as conservative lawmakers expressed their support.

Adding support was U.S. drugmaker Pfizer Inc citing supply chain challenges behind its decision to slash 2020 production targets for its coronavirus vaccine.

"Most of the bullish drivers that led to the 2020 rally will increasingly fade, reducing the likelihood for significant price upside," Fitch Solutions said in a note.

Among other metals, platinum gained 1.2% to $1,042.05 per ounce and palladium rose 1.6% to $2,338.32.

"Platinum is attracting renewed interest as a global push for cleaner energy and waning demand for gold promise to lift demand for the metal," Avtar Sandu, senior commodities manager at Phillip Futures, said in a note.

Platinum is used by automakers for catalytic-converter manufacturing to clean vehicle-exhaust fumes.

Silver rose 0.6% to $24.21 an ounce and was set to climb over 6% in the week.

(Reuters)


Tags assigned to this article:
gold prices silver prices gold demand trends