Gold prices ascended on Friday on concerns over rising cases of the Delta variant, although uncertainties over the U.S. Federal Reserve’s tapering timeline kept bullion on course for a weekly drop.
Spot gold rose 0.2% to $1,755.90 U.S. per ounce early Friday. However, it was down 0.4% for the week, after last week’s U.S. jobs report boosted early tapering expectations and sent bullion prices to a four-month low on Monday.
U.S. gold futures gained 0.4% to $1,758.40.
Surging COVID-19 cases around the world has weighed on investors risk sentiment, driving some safe-haven inflow into gold.
Fitch Solutions said in a note that demand for gold should remain robust amid elevated inflation rates and pandemic-related uncertainties, sustaining the appetite for safe-haven assets.
Meanwhile, the dollar held below a four-month high hit earlier this week and was on track for a second consecutive weekly gain.
Gold is seen as a hedge against inflation, but a Fed rate hike will increase the opportunity cost of holding non-yielding bullion.
Silver gained 0.5% to $23.28 U.S. per ounce, but was down 4.3% for the week.
Platinum fell 0.2% to $1,016.32 U.S. but was headed for its best weekly performance since late June.
Palladium fell 0.4% to $2,614.58 U.S. per ounce.
