Fundamental Comment

Gold falls but heading for biggest weekly gain in 11 years

Gold falls but heading for biggest weekly gain in 11 years

Gold fell during the Friday’s trading, despite its trend to record the best weekly performance since December 2008, where economic data contributed to increased investors' hopes for more precautionary measures.

As of 07:46 GMT, spot gold hovered around $1,618.42 an ounce, where the precious metal hit the highest level today at $1,635.56.

The yellow metal is heading for its best weekly performance since December 2008, rising more than 8.0 percent in the week to date.

The decline in the yellow metal witnessed after investors made a sell-off for profit taking, as the metal soared on Thursday after a record rise in US unemployment benefit applications due to the Coronavirus outbreak.

Economic data showed yesterday that unemployment benefit applications jumped to a record high of more than 3 million, on the back of layoffs as a result of the Covid-19 pandemic.

In China, factory profits stumbled during the first two months of this year, dropping 38.3 percent year-on-year to 410.7 billion yuan, the steepest tumble on records.

The Fed has taken unprecedented economic stimulus measures, and the U.S. Senate passed a $2 trillion stimulus package to support the economy.

However, investor fears about the Corona crisis persist, with the dramatic rise in coronavirus infections and deaths toll.

The number of global infections has risen to more than 536,000 and more than 24,000 deaths, according to the latest figures published by the Johns Hopkins University map.

As for other precious metals, silver slumped by 0.04 percent to $14.67 an ounce, heading for the best weekly performance since 2008.

Palladium advanced by 0.67 percent to trade at $2,241 an ounce, while platinum went in the same direction by edging up by 1.25 percent at $746.10, where the two metals have increased by 44 percent and 22 percent respectively since the beginning of this week.

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