Gold edged higher Friday, but the yellow metal remained on track for a weekly loss after failing to find haven-related support despite a stock-market selloff.
Gold for December delivery was up $12.40, or 0.7%, at $1,880.40 an ounce on Comex, while December silver rose 36 cents, or 1.5%, to $23.72 an ounce. Gold is down 1.4% for the week.
Analysts said gold found support as a rebound by the U.S. dollar lost some steam, with the ICE U.S. Dollar Index, a measure of the currency against a basket of six major rivals, off 0.1%. The dollar gauge is on track for a weekly rise of 1.2%, however. A stronger dollar can be a weight on dollar-denominated currencies, making them more expensive to users of other currencies.
“The dollar is firmly back in favor as traders seek out safety at the expense of riskier assets. It still feels strange to put gold in that category but the evidence is there for all to see,” said Craig Erlam, senior market analyst at Oanda, in a note. “The dollar has surged in recent days, although it is seeing some profit-taking today, while gold has tumbled out of the lower end of its range and is testing its late summer lows, around $1,850.”
Gold has failed to find support despite a rise in COVID-19 cases that has seen European countries impose new restrictions on activity and raised worries about the strength of the U.S. and global economic recovery. Stocks have fallen sharply, with the Dow Jones Industrial Average on track for its biggest weekly fall since March and the S&P 500 headed for its biggest weekly decline since June.