Gold pulls back on Friday but heads for weekly gain amid rocky stock market

Gold futures fell on Friday, but edged higher for the week on the heels of a turbulent patch of trading for global equities.

“The precious metal remains supported by low-to-negative government bond yields, rising coronavirus cases in the United States and a tired U.S. dollar,” said Lukman Otunuga, senior research analyst at FXTM. “On top of this, the Federal Reserve’s policy shift to let inflation rip may provide gold with a tailwind as interest rates remain lower for an extended period.”

Rising inflationary pressures may also “erode the dollar’s purchasing power, meaning gold holds its value while the greenback depreciates” he told MarketWatch.

On Friday, December gold GCZ20, +0.01% GC00, +0.01% declined by $16.40, or 0.8%, to settle at $1,947.90 an ounce, following a rise of 0.5% Thursday.

December silver SIZ20, +0.25% SI00, +0.25%, meanwhile, gave up 43 cents, or 1.6%, at $26.857 an ounce.

For the week, gold tallied a 0.7% gain, while silver climbed by 0.5%, based on the most-active contract settlements last Friday, FactSet data show.

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Worries about inflated valuations, particularly in the technology-related sectors, drove the Nasdaq Composite Index COMP, -0.60%   into correction territory on Tuesday, after weeks of gains, and stocks have struggled to claw back those losses thus far. U.S. benchmark stock indexes were lower for the week.

Bullion, which has ascended in price amid the global viral outbreak, has benefited recently from

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