Gold steadies as dollar pauses; platinum set for over 10% weekly gain
By Eileen Soreng (Reuters) - Gold recovered earlier losses to steady on Friday as the dollar pulled back from session highs, while platinum was headed for its biggest weekly rise since March 2020 on expectations for a revival in auto sector demand. Spot gold was up 0.1% at $1,826.41 per ounce by 1604 GMT, off an earlier low of $1,809.70.
By Eileen Soreng
(Reuters) - Gold recovered earlier losses to steady on Friday as the dollar pulled back from session highs, while platinum was headed for its biggest weekly rise since March 2020 on expectations for a revival in auto sector demand.
Spot gold was up 0.1% at $1,826.41 per ounce by 1604 GMT, off an earlier low of $1,809.70. U.S. gold futures were also up 0.1% at $1,828.30.
The macro backdrop remains supportive, with gold prices "likely to resume their uptrend in coming weeks given our expectations for the dollar to weaken further alongside real yields remaining low or negative," said Standard Chartered analyst Suki Cooper.
While gold initially dipped due to a bounce in the dollar, "market focus remains on the size and timing of the U.S. fiscal stimulus, inflation expectations and progress of the vaccine roll-out," she added.
The dollar pared gains after an initial bounce, and was set for its biggest weekly loss in eight.
Gold was also headed for its first weekly gain in three, helped by expectations for a $1.9 trillion U.S. coronavirus relief package, given its status as a hedge against inflation likely spurred by widespread stimulus.
Spot platinum rose 0.7% to $1,243.49 per ounce after jumping as high as $1,268.88 on Thursday, en route to an over 10% weekly rise. Palladium gained 1.1% to $2,368.91 per ounce.
Both metals are used by automakers in catalytic converters to clean car exhaust fumes.
While platinum is likely to end the year with a deficit, the pace of investment demand seen over the last few weeks is unlikely to remain, said Daniel Ghali, commodity strategist at TD Securities.
"We'll probably see platinum prices consolidate here for the time being," he said.
Silver rose 1.5% to $27.34 per ounce. Silver has seen an influx of fresh interest following a brief spike in spot prices triggered by a retail frenzy last week. Analysts are also betting on further gains this year from industrial demand.
(Reporting by Eileen Soreng in Bengaluru; Editing by Jan Harvey)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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