Investing.com - Financial Markets Worldwide

PRECIOUS-Gold set for biggest weekly gain since April on bearish economic outlook

Published 12/06/2020, 11:34
Updated 12/06/2020, 14:18
© Reuters.
XAU/USD
-
XAG/USD
-
GC
-
SI
-
USDIDX
-

* Gold up about 3% so far this week
* Platinum set for biggest weekly fall since end-April

(Adds comment, updates prices)
By K. Sathya Narayanan
June 12 (Reuters) - Gold rose on Friday as fears over the
resurgence of coronavirus infections and a grim economic outlook
by the U.S. Federal Reserve boosted demand for bullion, leading
the metal towards its biggest weekly gain since early-April.
Spot gold XAU= was 0.5% higher at $1,736.26 per ounce by
1303 GMT and has jumped about 3% so far this week, heading for
its its biggest gain since the week of April 10.
U.S. gold futures GCv1 gained 0.5% to $1,748.20.
"One of the reasons has been the statement form the FOMC and
the testimony of the (Fed Chair) Jerome Powell, painting a
darker picture of the U.S. economy," said Quantitative Commodity
Research analyst Peter Fertig.
Also, "there is talk about a second wave especially after
cases of new infections of the virus have risen again in some
countries. A warning which many people ignored." Meanwhile, the dollar .DXY was on track to record its
fourth week of declines, making gold cheaper for investors using
other currencies. USD/
Earlier this week, Fed policymakers projected the U.S.
economy to shrink 6.5% in 2020, while data showed that Britain's
economy shrank by 20.4% in April. "There is still significant uncertainty about how the
economic recovery will play out and any disappointments could
support the gold price," Robin Bhar, an independent consultant
said in a note.
Gold is considered a safe haven during times of economic
uncertainty.
Elsewhere, palladium XPD= rose 1.1% to $1,943.40 per
ounce, while silver XAG= declined 0.5% to $17.61.
Platinum XPT= climbed 1.4% to $822.54 an ounce, but was
set for its biggest weekly fall since end-April.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.