Gold prices on Friday were halted from a recent series of gains that led to a six-week high, but the precious metal was heading for its third consecutive weekly improvement.
Precious metals have received some support from central banks that have pledged to keep interest rates lower for longer among COVID-19 pandemics and governments that have pledged to print more money to prevent added to the economic damage caused by the pandemic.
Continued weakening of the U.S. dollar, which appears to be triggering two straight months of a decline of more than 2%, has also strengthened gold and silver demand. A weaker dollar can make precious metals priced in dollars more attractive to buyers using foreign currencies.
“The central bank seems to be committed, in theory, to keeping rates lower than before and that applies to buying as well. That could continue to support the yellow metal, especially with the travel direction for the dollar, ”Craig Erlam, Oanda ‘s senior market analyst, wrote in a research note.
February Song GCG21,
trading $ 2.80, or 0.2%, lower at $ 1,887.60 an ounce, after a 1.7% gain Thursday pushed the metal to its highest limit since Nov. 6, according to FactSet data.
Gold rose on Wednesday since the last policy update at the Federal Open Market Committee of 2020, when it stressed its intention to keep interest rates close to 0% until at least 2023 and keep buying bonds so the economy can recover fully recovered from the viral pandemic.
Meanwhile, money for delivery in March SIH21,
shed 17 cents, or 0.7%, to trade at $ 26.02 an ounce, after a 4.5% rise.
For the week, gold is on track for a weekly gain of 2.4%, while silver futures looked at a weekly gain of around 8%, marking the best weekly increase in six weeks if maintain benefits, according to FactSet data based on most active contract.
Against that background, U.S. transportation leaders are racing to roll out a $ 900 billion aid package to Americans and out-of-work businesses affected by COVID- pandemic. 19. Lawyers are scrambling to fulfill a fiscal spending deal before federal funding expires and the government faces closure at 12:01 am on Saturday.