Gold Set to Run Win Streak to 5 Wks. on Virus Fears

Gold was set for a fifth straight weekly gain on Friday as worries over a spike in U.S. coronavirus cases kept the safe-haven metal near the technical $1,800-per-ounce threshold.

Spot gold was little changed at $1,801.47 U.S. per ounce, up nearly 1.5% for the week. U.S. gold futures rose 0.2% to $1,806.80.

However, longer-term technicals suggest a slowing in the price momentum, and positioning is pointing to a market very long on gold, implying a short-term pullback is possible.

More than 60,000 fresh COVID-19 cases were reported across the United States on Wednesday, the largest one-day increase by any country since the pandemic emerged in China last year.

Data showed U.S. shoppers were staying out of stores in areas where cases are rising the most, dampening hopes of a quick recovery in the world’s biggest economy.

Surging cases also boosted the dollar, making gold more expensive for holders of other currencies.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings slipped 0.15% to 1,200.82 tonnes on Thursday.

Palladium fell 0.2% to $1,938.30 U.S. per ounce, platinum declined 1% to $825.09 U.S., and silver slipped 0.4% to $18.60 U.S.