Gold inches down as dollar steadies; platinum set for over 10% weekly gain
Sat Feb 13 2021
Lucy Harlow (3650 articles)

Gold inches down as dollar steadies; platinum set for over 10% weekly gain

Gold eased on Friday with the dollar steadying, while platinum was headed for its biggest weekly rise since March 2020 on expectations for a revival in auto sector demand.

Spot gold was 0.2% lower at $1,822.15 per ounce by 2:04 p.m. (1904 GMT). U.S. gold futures settled down 0.2% at $1,823.20.

The dollar held steady, but was set for its biggest weekly loss in eight.

The macro backdrop remains supportive, with gold prices “likely to resume their uptrend in coming weeks given our expectations for the dollar to weaken further alongside real yields remaining low or negative,” said Standard Chartered analyst Suki Cooper.

“Market focus remains on the size and timing of the U.S. fiscal stimulus, inflation expectations and progress of the vaccine rollout,” she added.

Gold was also headed for its first weekly gain in three, helped by expectations for a $1.9 trillion U.S. coronavirus relief package, given its status as a hedge against inflation likely spurred by widespread stimulus.

Spot platinum rose 1% to $1,246.48 per ounce after jumping as high as $1,268.88 on Thursday, en route to an over 10% weekly rise. Palladium gained 1.8% to $2,386.94.

Both metals are used by automakers in catalytic converters to clean car exhaust fumes.

“There’s a concern about a tight market for platinum. … The trend is bullish, and people will be happy to keep buying the dip,” said Fawad Razaqzada, market analyst with ThinkMarkets.

Silver rose 1.2% to $27.26 per ounce. Silver has seen an influx of fresh interest following a brief spike in spot prices triggered by a retail frenzy last week. Analysts are also betting on further gains this year from industrial demand.

Lucy Harlow

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe