Gold prices were little changed on Friday as fears of a second wave of coronavirus infections propped up demand for the safe-haven asset, but a stronger U.S. dollar and hopes of a swift economic recovery limited the upside.
Spot gold was flat at $1,723.19 U.S. per ounce, early Friday morning, making for a weekly fall of 0.4% for bullion.
U.S. gold futures edged 0.1% higher to $1,731.90 U.S. per ounce.
Mainland China reported 32 new coronavirus cases as of the end of Thursday, 25 of which were reported in the capital Beijing, China’s National Health Commission said on Friday.
A surge in new infections in several U.S. states and the imposition of travel curbs in Beijing to stop a new outbreak there have served as a reminder of the risks of reopening economic activity before a vaccine has been developed.
Cleveland Federal Reserve Bank President Loretta Mester said it could take a year or two for the U.S. economy to return to levels seen before the pandemic.
Gold is often used as a safe store of value during times of political and financial uncertainty.
Elsewhere, palladium dropped 1.1% to $1,903.30 U.S. per ounce, silver fell 0.7% to $17.38 U.S., while platinum gained 0.1% to $805.34 U.S.
Related Stories
