Gold rose on Friday to trade below a three-week high reached in the previous session, as cracks widened in Sino-U.S. relations and investors worried a recovery from coronavirus-induced economic slump would be slower than expected.
Spot gold gained 0.2% to $1,732.01 per ounce by 0349 GMT, having hit its highest since April 23 at $1,735.96 on Thursday. U.S. gold futures rose 0.1% to $1,742.60.
“It’s been clear, as more economic data is released, that some of the damage that has been done (to the global economy) would take much longer to repair than expected,” said Michael McCarthy, chief strategist at CMC Markets.
It is becoming increasingly apparent that a snap-back or a V-shaped economic recovery is very unlikely, McCarthy said, adding that this meant interest rates would stay low for longer, adding to the appeal for gold.
Source : Reuters