LONDON: Gold prices rose on Friday, en route to a second straight weekly gain, as the dollar weakened and on concerns about economic recovery from the coronavirus crisis.

Spot gold rose 0.6 per cent to $1,954.51 per ounce at 11:13 am EDT (1513 GMT), and was up 0.6pc so far this week. US gold futures gained 0.6pc at $1,960.90.

“We’re seeing a slightly weaker dollar, although we’re still in a bit of range here. Gold prices should do better because the dollar will continue to weaken,” said Edward Meir, an analyst at ED&F Man Capital Markets.

“The path of least resistance is upwards because of the Fed, all the stimulus coming from global central banks (and) more fiscal stimulus if there’s deal in Washington; all the tailwinds are pointing in the direction for higher prices.”

The dollar fell 0.2pc against rivals, making gold cheaper for holders of other currencies. The US Federal Reserve vowed on Wednesday to keep interest rates near zero for a long time, while the United States considered a proposed $1.5 trillion coronavirus aid bill.

Lower interest rates, which reduce the opportunity cost of holding non-yielding bullion, and widespread stimulus measures have helped gold gain over 28pc this year as it is seen as a hedge against inflation.

Published in Dawn, September 19th, 2020