Gold futures fell early Friday but headed for weekly gain in turbulent patch of trading for global equities.
Bullion, which has ascended in price amid the global viral outbreak, has benefited recently from newfound volatility in the stock market after the precious metal’s coronavirus-fueled advance stalled out over the past few weeks. However, some commodity experts question the metal’s ability to retake its perch around $2,000 soon.
“Gold still looks bullish, but it will struggle to break the $2000 level again until the dollar resumes its downtrend,” wrote Edward Moya, senior market analyst at Oanda, in a Friday research note.
“Gold’s safe-haven appeal will struggle if all the risks to the outlook come crashing at once,” he wrote.
Bullish investors make the case that uncertainty around the U.S. presidential elections on Nov. 3, with incumbent President Donald Trump trailing former Vice President Joe Biden in national polls, and concerns about the virus and geopolitical tensions, provide a host of possible catalysts for gold to rise.
On Friday, December gold retreated $10.70, or 0.5%, at $1,953.80 an ounce, giving up a similar gain on Thursday.
December silver, meanwhile, gave up 34 cents, or 1.2%, at $26.95 an ounce, following a 0.8% gain in the previous session.
Worries about inflated valuations, particularly in the technology-related sectors, drove the Nasdaq Composite Index into correction territory on Tuesday, after weeks of gains, and stocks have struggled to claw back those losses thus far.
For the week, gold is aiming for a 0.9% gain, while silver is set for a similar weekly percentage gain based on the most-active contract’s settlement on Friday.