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Gold set for highest weekly gain in six months on haven demand

Gold set for highest weekly gain in six months on haven demand

Gold prices rose during Friday’s trading, hitting the highest levels in seven years, heading for the best weekly performance in more than six months, as the soaring number of infections with coronavirus boosted haven demand on gold.

As of 07:37 GMT, spot gold hovered around $1,636.50 an ounce, the highest level since February 2013. Prices have risen more than 2.5 percent since the beginning of the week, which is the largest weekly advance since August 8.  

The yellow metal surged for a fourth straight session and currently set for its second consecutive weekly gain.

The National Health Committee remarked on Friday that China has recorded 889 new cases of Coronavirus on Thursday, up from 394 the previous day. This brings the total number of confirmed cases in China to 75,465.

Outside China, South Korea has reported 52 new cases of the virus, bringing the country's total to 156, while Japan has declared the first death on board a cruise ship, the largest concentration of infections outside China.

Gold's gains are supported by the notable losses incurred on Wall Street last night, as the Dow Jones lost 0.44 percent, the S&P 500 dipped 0.38 percent and the Nasdaq Composite descended 0.67 percent.

As for other precious metals, silver rose 1.03 percent to $18.55 and is heading for its best weekly performance since the week ended August 25, while platinum climbed 0.31 percent to $982.05.

Palladium rose to $2,589.65 an ounce, but is up about 11 percent since the beginning of the week and is heading toward its strongest weekly performance in more than a month.

Meanwhile, the dollar index, which measures the performance of six major other currencies, slumped by 0.07 at 99.70 after recording the highest level since May 2017 at 99.81.

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