Gold prices rose on Friday after gloomy data on US jobless claims reinforced fears of a slower recovery from the economic crisis caused by the Coronavirus, which negatively affected the dollar and US Treasury yields.
Gold rose in spot trading 0.3 percent to 1947.83 dollars an ounce by 0503 GMT.
Gold is up 0.2 percent since the start of this week, after plummeting 4.5 percent in the week ending August 14, its worst weekly performance in five weeks.
Gold futures rose 0.5 percent to $ 1956.10.
“The deterioration of US labor market data, falling bond yields and continuing geopolitical tension continue to support gold,” said John Sharma, an economist at the National Australia Bank.
“We expect gold to trade between $ 1920 and $ 1980 in the short term,” he said, adding that factors such as increased risk appetite and progress in reaching a coronavirus vaccine could put pressure on demand.
A rally on Wall Street fueled by technology stocks pushed Asian markets up today, limiting the yellow metal’s gains.
Thursday’s data showed that the number of Americans filing for new unemployment benefits unexpectedly rose to over a million, in a setback for the US labor market, devastated by the Corona pandemic.
This pushed the dollar index and record ten-year US Treasury yields down, making gold an attractive investment for holders of other currencies.
As for the other precious metals, silver gained 0.6 percent to $ 27.40 an ounce and is poised for a weekly rise of about 3.8 percent.
Platinum rose 0.6 percent to $ 922.77, while palladium fell 0.5 percent to $ 2,170.53.
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