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Gold set for strong weekly gain after Fed’s stimulus

Gold set for strong weekly gain after Fed’s stimulus

Gold prices continued to rise on Friday, after climbing to a one-month high on Thursday’s trading, with the decline of the US currency after the Fed’s stimulus measures and the downbeat unemployment claims data.

As of 07:45 GMT, spot gold hovered around $1,680.16 an ounce, where the precious metal hit the highest level today at $1,689.66, heading for a weekly gain.

Noting that gold rose 4.1 percent on Thursday's trading or $68.50 to $1,752.80 an ounce, the highest level for the most active decade since October 2012.

Economic data revealed that 6.6 million Americans applied for unemployment benefit last week, bringing the total number of applications to more than 16 million over the past three weeks.

U.S. consumer confidence fell from an all-time high, while US producer prices fell below expectations last month.

All governments and central banks are trying hard to contain the effects of the virus amid the disruption of economic activity in most countries of the world due to national closures.

The Federal Reserve has announced $2.3 trillion in loans as part of its measures to boost the economy affected by the Coronavirus.

Under the specific provisions, loans will be directed to companies with up to 10,000 employees with revenues of less than $2.5 billion in 2019, the Fed said.

The program is also scheduled to include salary protection and other measures.

"Our country's top priority is to deal with this public health crisis, provide care for patients and reduce the rapid spread of the virus," Fed President Jerome Powell said in a statement.

He added that the role of the U.S. central bank is to ease the burden and stabilize as much as possible during this period of restriction of economic activity.

The outbreak of Coivd-19 has claimed more than 95,000 lives and infected nearly 1.6 million people worldwide, according to calculations by Johns Hopkins University.

Meanwhile, the dollar index, which measures the performance of six major currencies against the US dollar, slumped by 0.64 percent at 99.53.

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