Fri, Dec 04, 2020 – 12:02 PM
Spot gold rose 0.2 per cent to US$1,843.99 per ounce by 3.10am GMT. US gold futures were up 0.4 per cent at US$1,847.90.
“Upward momentum (in gold) is strong partly because of a weakening dollar and prices have been technically oversold, so its also a technical rebound,” said Margaret Yang, a strategist at DailyFX, adding that the metal could find strong support at US$1,800 and US$1,750.
Ms Yang, however, warned there could be downside risks if economic recovery quickens and inflation overshoots, prompting the US Federal Reserve to hold back on monetary stimulus that could strengthen the dollar.
The US dollar eased on Friday and was set for its worst week since early November, making gold cheaper for other currency holders.
A bipartisan, US$908 billion coronavirus aid plan gained momentum in the US Congress on Thursday as conservative lawmakers expressed their support.
“Many of the bullish drivers that led to the 2020 rally will more and more fade, lowering the chance for renewed important price upside,” Fitch Options mentioned in a notice, forecasting gold to common US$1,850 per ounce subsequent yr.
Buyers are awaiting US non-farm payrolls knowledge due at 1.30pm GMT for additional clues on the tempo of the financial restoration.
Silver rose 0.1 per cent to US$24.09 per ounce and was set to climb 6 per cent within the week. Platinum gained 1.three per cent to US$1,043.19 and palladium was up 1.2 per cent at US$2,328.82.