(Updates prices)
* Platinum, palladium poised for best week ever
* Silver heads for its best week since 2008
* Interactive graphic tracking global spread of coronavirus:
(open
in an external browser) https://tmsnrt.rs/3aIRuz7
By Sumita Layek
March 27 (Reuters) - Gold fell on Friday on caution ahead of
the weekend, but prices were set to post their biggest weekly
gain since 2008 as economic damage expected from the coronavirus
boosted bullion's safe-haven appeal.
Platinum and palladium were on track for their biggest
weekly gains on record on supply concerns arising from a
lockdown in major producer South Africa.
Spot gold XAU= fell 0.2% to $1,625.16 per ounce as of 1:36
p.m. EDT (1736 GMT). U.S. gold futures GCcv1 settled 1.5%
lower at $1,625.80 per ounce.
"A sell-off in U.S. equities has weighed in on all asset
classes again leading to a series of margin call pressure on
precious metals," said Phil Streible, chief market strategist at
Blue Line Futures in Chicago.
Wall Street shares fell as fears about the economic damage
from the pandemic returned. .N
"Gold has tied itself with the equity markets," said Bob
Haberkorn, senior market strategist at RJO Futures. "There are
so many unknowns heading into the weekend, and though gold is a
safety asset, there is just a reluctance to add risk-on."
Gold has gained more than 8% so far this week, supported by
the biggest-ever jump in U.S. weekly jobless claims, and the
U.S. Federal Reserve's unprecedented economic stimulus measures.
Meanwhile, the U.S. House of Representatives passed a $2.2
trillion coronavirus aid bill. "The market is looking to assess the impact of numerous
lockdowns and business closures on the economy," Standard
Chartered Bank analyst Suki Cooper said in a note. "Gold prices
have gained further ground in anticipation of further stimulus
and weaker data to come."
"Price risks remain to the upside barring profit-taking and
(we) expect prices to average $1,725 per ounce in Q2-2020," she
said.
Gold market participants also kept a close eye on physical
supply as virus-led lockdowns stalled supply chains.
CME Group announced the initial listing of enhanced delivery
gold futures that will be deliverable in 100-ounce bars,
400-ounce bars, or kilo bars, effective April 6. Physical gold dealers struggled to meet surging safe-haven
demand this week, especially in Singapore, as the pandemic
choked global supply chains, while massive discounts were
offered in India amid a lockdown. Elsewhere, palladium XPD= fell 3.2% to $2,255.81 per
ounce, but has risen over 36% so far this week. Platinum XPT=
rose 0.6% to $740.47, but has gained about 21% this week.
Silver XAG= fell 0.2% to $14.36, but was heading for its
largest weekly gain since 2008.