Gold prices rise slightly to stop the slippage, but mark the first consecutive weekly decline since March

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Gold futures made a small gain on Friday to stop a third consecutive slide, but the precious metal’s advance for the day was not enough to avoid the first consecutive weekly declines since the start of the pandemic of COVID-19 in March.
Experts say a resurgence of the US dollar has given investors some pause in buying bullion because the product’s price is calculated in the currency and a stronger dollar can make gold comparatively more expensive for investors. foreigners.

The dollar was up 0.5% on Friday, offsetting a larger rise earlier in the session, but also putting a measure of the dollar against half a dozen currencies, the ICE Dollar index, on track for a weekly hike of 0.2%, driven in part by comments from the Federal Reserve implying that the central bank was not yet willing to implement unconventional strategies to keep interest rates lower for longer in the amid the COVID-19 pandemic.
“Gold bulls have been absent in action this week as investors digested the final minutes of the Fed that temporarily injected life into the dollar,” wrote Lukman Otunuga, senior research analyst at FXTM, in a note from Friday. Still, FXTM analysts consider the yellow metal’s long-term outlook to be solid.
“Regardless of recent losses, the fundamentals remain in favor of rising gold prices with a potentially rebound on the charts,” Otunuga wrote. He said the low public debt rates, with the yield on 10-year Treasury bills TMUBMUSD10Y,
0,638%
fluctuating between a range of 0.80% and 0.60% in recent weeks, concerns over the outcome of the US presidential election and the trajectory of the economy in the aftermath of the White House race as bullish factors ingot.
“A significantly weaker dollar, negative US yields, pre-election nervousness and an increase in coronavirus cases in the United States should make gold shine in the medium to long term,” he said.
On top of that, UBS analysts said gold can serve as a place in a diversified portfolio “as a means of capturing the economic recovery” and “a portfolio hedge in a low interest rate environment”.
At the same time, on Thursday, former Vice President Joe Biden accepted the Democratic presidential nomination and presented himself as a capable leader, ready to pull the country out of the coronavirus pandemic, paving the way in November for a battle with incumbent Republican President Donald Trump.
December or GCZ20,
+ 0,01%
GC00,
+ 0,01%
picked up 50 cents, or less than 0.1%, to settle at $ 1,947 an ounce, marking a weekly decline of 0.1%, based on last Friday’s settlement for the most active contract. The drop marks the second consecutive weekly decline in gold since a similar period ended March 20, according to FactSet data.
Meanwhile, the December silver price SIU20,
-1,38%,
the most active contract, fell 42.4 cents, or 1.5%, to close at $ 26.877 an ounce, with the metal posting a weekly decline of 3%, based on the most active contract.
In other metals, September copper HGU20,
-1,61%
fell 5.7 cents, or 1.9%, to $ 2.9175 a pound, but posted a weekly gain of 2%. Separately, October Platinum PLV20,
+ 0,35%
lost 80 cents, or less than 0.1%, to end at $ 926.10 an ounce, and posted a weekly decline of 3.4%, while September palladium PAU20
-0,11%
fell $ 6.60, or 0.3%, to $ 2,180.30 an ounce, but posting a weekly gain of 1.7%.

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