Spot gold rose 0.3% to $1,909.10 per ounce
Gold firmed above $1,900 an ounce on Friday, on course to register a weekly gain, as the dollar weakened and as investors hedged against uncertainties surrounding the coronavirus pandemic and going into the November 3 US presidential election.
Spot gold rose 0.3 per cent to $1,909.10 per ounce by 0946 GMT (3:01 pm in India) and was up 0.5 per cent for the week. US gold futures gained 0.4 per cent to $1,912.
“Gold is getting some boost from the dollar weakening and we have the US elections and there’s still a lot of uncertainty. Also, there are talks about the US stimulus package in negotiation,” said Bank of China International analyst Xiao Fu.
The dollar index fell 0.2 per cent against its rivals, making dollar-denominated gold less expensive for holders of other currencies.
House Speaker Nancy Pelosi on Thursday reported progress in talks with the Trump administration for another round of fiscal aid and a deal could be reached “pretty soon”.
Even once the US election results were known, “there still could be uncertainty about policies and implementation running until the end of the year, in turn supporting gold”, Bank of China International’s Fu said.
There could also be additional inflows into gold exchange traded funds – often a gauge of investor sentiment – on renewed uncertainties over pandemic-related restrictions and the US election outcome, UBS analysts said in a note.
The final debate between US President Donald Trump and his Democratic challenger Joe Biden included contrasting views on the pandemic.
Countries across Europe implemented fresh restrictions as coronavirus cases more than doubled over the last 10 days, while the global tally touched about 41,178,000.
Silver fell 0.2 per cent to $24.70 per ounce, but was set for a weekly rise. Platinum rose 0.2 per cent to $886.50 and palladium was flat at $2,372.99.