Reuters: Gold Eases, But Eyes Biggest Weekly Gain Since 2008
Article by Sumita Layek in 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.
“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.
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.
Investors are awaiting passage of a $2.2 trillion stimulus package bill that will pump money into the world’s largest economy to stem the damage caused by the pandemic.
“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.
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