Pure gold ore is shown on the stone floor of a mine. Picture: 123RF/PHAWAT KHOMMAI
Pure gold ore is shown on the stone floor of a mine. Picture: 123RF/PHAWAT KHOMMAI

Bengaluru — Gold prices edged higher on Friday, with the metal’s safe-haven demand supported by concerns over a second wave of coronavirus infections, though gains were limited by a stronger US dollar.

Spot gold was up 0.1% at $1,724.91/oz by 2.53am GMT. Bullion has fallen 0.3% so far this week. US gold futures rose 0.2% to $1,733.90/oz.

“Gold prices seem to be in somewhat of an equilibrium at the moment. Balanced between geopolitical and Covid-19 concerns on one side, and economic recovery hopes and dollar strength on the other,” said Jeffrey Halley, senior market analyst at Oanda.

“Gold continues to see patient buyers on dips to $1,710 to $1,715 an ounce, with equally patient sellers lying in wait on any spikes towards $1,740.”

More than 8.38-million people have been reported to be infected by the coronavirus globally, with China reporting 32 new virus cases on Friday, 25 of which were reported in the capital city Beijing.

A surge in fresh infections in several US states and the imposition of travel curbs in Beijing to stop a new outbreak have renewed fears of a delay in economic recovery as countries reopen after coronavirus-induced lockdowns.

Simmering geopolitical tensions between North Korea and South Korea, and India and China also offered some support to bullion, which is often used as a safe-haven investment during times of political and financial uncertainty.

US President Donald Trump on Thursday renewed his threat to cut ties with China, a day after his top diplomats held talks with Beijing amid souring relations.

Meanwhile, the dollar index rose 0.1% and was heading for its best week in a month.

Elsewhere, palladium dropped 1.9% to $1,888.72/oz and was on track for a second consecutive weekly decline. Silver fell 0.7% to $17.38/oz, while platinum gained 0.1% to $805.34/oz.

Reuters

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