Gold firm despite surging virus fear

Gulf Today Report 

Gold prices steady on Friday due to concerns for the economy about the soaring COVID-19 cases, it still headed for its worst week since September.

Spot gold rose 0.2% to $1,879.11 per ounce by 0601 GMT. For the week so far, it has declined by 3.7%. US gold futures gained 0.2% to $1,877.10.

According to Edward Meir, ED&F Man Capital Markets analyst, "there has been a bit of shift in market psychology."

People have recognized that it will take a while before the vaccine can be roll-out,hence, relief needed as urgently as possible. 

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According to reports, coronavirus cases surged by more than 100% in 13 US states following the election. Globally, 52.45 million people have been infected with the virus.

Meir added that the uncertainty of a stimulus package seems to be capping gold.

In a note by Fitch Solutions, it says, "sentiment towards gold prices has eased significantly since they peaked in August, and prices would need a strong incremental bullish narrative to exceed the highs reached in 2020, which we struggle to find at this point."

Silver was steady at $24.22 per ounce. Platinum rose 0.7% to $885.60, while palladium was 0.5% higher at $2,342.45.