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PRECIOUS-Gold set for weekly gain as U.S. stimulus hopes dent dollar

Published 04/12/2020, 02:44 pm
Updated 04/12/2020, 06:48 pm
© Reuters.
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(Updates prices)

* Further downside likely for gold in medium-term - analyst

* Silver set for 1st weekly gain in four

* Interactive graphic tracking global spread of coronavirus: https://tmsnrt.rs/3mvcUoa

By Nakul Iyer

Dec 4 (Reuters) - Gold prices firmed on Friday and were set for their first weekly gain in four as the dollar weakened on hopes of more U.S. stimulus, while investors awaited U.S. non-farm payrolls data due later in the day.

Spot gold XAU= rose 0.1% to $1,842.83 per ounce by 0717 GMT. U.S. gold futures GCv1 were up 0.3% at $1,846.70.

Gold has added about 3% so far this week.

"Upward momentum (in gold) is strong partly because of a weakening dollar and prices have been technically oversold," said Margaret Yang, a strategist at DailyFX, adding that the metal could find strong support at $1,800 and $1,750.

Yang, however, warned there could be downside risks if economic recovery quickens and inflation overshoots, prompting the U.S. Federal Reserve to hold back on monetary stimulus that could strengthen the dollar.

The U.S. dollar was on course for its worst week since early November, making gold cheaper for other currency holders. USD/

A bipartisan, $908 billion coronavirus aid plan gained momentum in the U.S. Congress on Thursday as conservative lawmakers expressed their support. support was U.S. drugmaker Pfizer Inc (NYSE:PFE) PFE.N citing supply chain challenges behind its decision to slash 2020 production targets for its coronavirus vaccine. of the bullish drivers that led to the 2020 rally will increasingly fade, reducing the likelihood for significant price upside," Fitch Solutions said in a note.

Among other metals, platinum XPT= gained 1.2% to $1,042.05 per ounce and palladium XPD= rose 1.6% to $2,338.32.

"Platinum is attracting renewed interest as a global push for cleaner energy and waning demand for gold promise to lift demand for the metal," Avtar Sandu, senior commodities manager at Phillip Futures, said in a note.

Platinum is used by automakers for catalytic-converter manufacturing to clean vehicle-exhaust fumes.

Silver XAG= rose 0.6% to $24.21 an ounce and was set to climb over 6% in the week.

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