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

Published 06/12/2020, 06:34 PM
Updated 06/12/2020, 09:20 PM
© Reuters.
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* 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.

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