Gold slips but heads for biggest weekly gain since 2008

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Gold eased on Friday after five

straight days of gains, but was still set for its largest weekly

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Gold slips but heads for biggest weekly gain since 2008 Back to video

rise since December 2008 on safe haven demand as the coronavirus

led to a surge in U.S. jobless claims and wreaked havoc on the

global economy.

Autocatalysts platinum and palladium, meanwhile, were poised

for their biggest weekly gains on record, as a lockdown in major

producer South Africa stoked supply worries.

Spot gold had fallen 0.6% to $1,620.07 per ounce by

1226 GMT. U.S. gold futures were 1.9% lower at $1,620.50

per ounce.

“There’s some profit-taking after a strong rally,” Bank of

China International analyst Xiao Fu said. “There’s still

interest in gold as an inflation hedge and as a safe-haven. Over

the medium to long term, these two properties will be enhanced.”

“Very short term, there is significant uncertainty in terms

of liquidity, and how people are responding to the policy

measures.”

Gold has gained about 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.

European stocks fell, in a sign that traders were focusing

more on the outbreak than on policy measures.

The U.S. dollar was set for its biggest weekly fall in over

a decade.

In a bid to soften the economic blow from the virus, the

U.S. House of Representatives is expected to pass a $2.2

trillion relief bill.

Leaders of the Group of 20 major economies also pledged on

Thursday to inject more than $5 trillion into the global economy

to limit job and income losses.

Gold market participants also kept a close eye on physical

supply as virus-led lockdowns stalled supply chains.

China’s net gold imports via Hong Kong halved in February

from the previous month, as the outbreak slowed activity.

Palladium was down 1.3% at $2,302.38 per ounce, but

has risen around 42% so far this week, while platinum

fell 0.7% to $731.00 per ounce but has gained about 20% this

week.

The South Africa lockdown is helping to compensate for the

drop in demand caused by the shutdown of car production, said

UBS commodities analyst Giovanni Staunovo.

Silver fell 0.6% to $14.30 per ounce, but was heading

for its largest weekly gain since 2008.

“Apparently investors see silver as a bargain given that the

gold/silver ratio has at times exceeded 120,” Commerzbank

analysts said in a note.

(Reporting by Harshith Aranya and Asha Sistla in Bengaluru;

Editing by Pravin Char, Kirsten Donovan)