Gold Set For Best Week In 8 Years
Gold prices rose more than 1% on Friday and were on course for their biggest weekly gain since October 2011 as the global spread of the coronavirus dimmed growth prospects and sent investors scurrying for safe-haven assets.
Spot gold was up 0.7% at $1,681.67 (£1,278.15) per ounce at 10.58 GMT, having risen as high as $1,689.65. Prices are up around 6% so far this week. US gold futures rose 0.9% to $1,682.80.
"The usual out of risky assets into safe havens" flow is fuelling gold's rise, driven by concerns about the economic fallout from the virus, Peter Fertig, an analyst at Quantitative Commodity Research, told Reuters.
"Gold is looking to be one of the most attractive assets to own now as short term interest rates fall to near zero and most equity earnings are also expected to fall," Phillip Futures analysts said in a note.
"However a drastic and prolonged drop in equity prices may not be good for gold as traders cash in from gold to pay off margin calls in equity."