December 04, 2020
Gold set for weekly gain as U.S. stimulus hopes dent dollar
(Reuters) - Gold prices steadied on Friday and were set for their first weekly gain in four as the dollar weakened on growing hopes of U.S. stimulus, ahead of U.S. non-farm payrolls data due later in the day.
Spot gold was little changed at $1,840.75 per ounce . U.S. gold futures were up 0.2% at $1,844.10.
Gold has added about 3% so far this week.
"Upward momentum (in gold) is strong partly because of a weakening dollar and prices have been technically oversold," said Margaret Yang, a strategist at DailyFX, adding that the metal could find strong support at $1,800 and $1,750.
Yang, however, warned there could be downside risks if economic recovery quickens and inflation overshoots, prompting the U.S. Federal Reserve to hold back on monetary stimulus that could strengthen the dollar.
The U.S. dollar was on course for its worst week since early November, making gold cheaper for other currency holders.
A bipartisan, $908 billion coronavirus aid plan gained momentum in the U.S. Congress on Thursday as conservative lawmakers expressed their support.
Bullion also received support after Pfizer Inc slashed its target for the rollout of its COVID-19 vaccine.
"Most of the bullish drivers that led to the 2020 rally will increasingly fade, reducing the likelihood for renewed significant price upside," Fitch Solutions said in a note, forecasting gold to average $1,850/oz in 2021.
Among other metals, platinum gained 0.8% to $1,037.67 per ounce and palladium rose 1.7% to $2,340.32.
"Platinum is attracting renewed interest as a global push for cleaner energy and waning demand for gold promise to lift demand for the metal," Avtar Sandu, senior commodities manager at Phillip Futures, said in a note.
Both platinum and palladium are primarily used by automakers for catalytic-converter manufacturing to clean vehicle-exhaust fumes.
Silver fell 0.1% to $24.03 an ounce but was set to climb 5.8% in the week.