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Gold edged lower Friday, pulling back from the more-than-six-year high it settled at a day earlier, but on track for a second straight monthly climb.
The precious metal looks to end with its highest weekly price settlement since March 2013—”entirely erased that spring’s ugly crash, and pretty much the only thing to catch a bid as January ends,” said Adrian Ash, director of research at BullionVault.
“The current backdrop for gold is stereotypical of strong phases,” he told MarketWatch. “Over-priced stock markets are wobbling, global growth is slowing hard, and political uncertainty is worsening.”
Against that backdrop, gold for April delivery GCJ20, +0.15% on Comex was off $1.10, or 0.07%, at $1,588.10 an ounce. Prices were on track for a weekly climb of 0.6%, and a rise of 3.8% for the month, based on the most-active contract, according to FactSet. A settlement around this level would mark the highest weekly finish since March 2013.
March silver SIH20, +0.29% was off 5.2 cents, or 0.3%, to $17.94 an ounce, with prices up by just 0.1% for the month.
Gold’s rally was boosted this week as worries mounted over the potential global economic impact of the spread of the coronavirus. Those concerns helped burnish gold’s appeal as a haven as investors shunned risky assets, including stocks.
Gold “has been in a strong uptrend since early December, largely due to the significant monetary stimulus from central banks around the world,” said Harry G. Katica, analyst at Saut Strategy, in a note. “With a greater possibility of economic slowdown, further rate cuts may be needed as the year progresses. This would be good for gold.”
Global equity markets were under pressure Friday, but U.S. stocks had rebound on Thursday afternoon after the World Health Organization declared the outbreak a global emergency, with analysts tying the bounce to relief over the lack of a recommendation by the body to restrict travel to or trade with China. Beijing has reported nearly 9,700 cases of coronavirus, while the death toll has climbed to 213. The U.S. State Department on Friday urged Americans not to travel to China.
In other metals trade, April platinum PLJ20, -1.74% was off 1.9% at $962.30 an ounce, with most-active contract prices down about 1.6% for the month, while March palladium PAH20, +0.79% rose 0.8% to $2,2233 an ounce, poised for a monthly rise of nearly 17%.
March copper HGH20, -0.32% edged down 0.6% to $2.5095 a pound, looking at a monthly decline of more than 10%.
