Gold prices fell today, Friday, as the US dollar rebounded, but the precious metal is on its way to achieving a weekly gain, supported by fears about the global economy recovering from a decline caused by the Corona virus.
By 05:28 GMT, spot gold fell by 0.8% to 1938.53 dollars an ounce, after reaching its best level since the second of September at 1965.94 dollars on Thursday.
Also, US gold futures fell 0.9% to 1945.50 dollars an ounce.
“The recovery in the US dollar index pushed gold prices down following the neutral tone of the European Central Bank yesterday. The outlook for gold in the medium to long term remains positive,” said Margaret Young, analyst at the Daily Fix.
The dollar index recovered from a significant decline against the euro in the previous session and is on track to record its best weekly performance since mid-May. A stronger dollar increases the cost of gold for holders of other currencies.
Gold prices have increased by 28% since the beginning of this year, as governments and central banks pumped huge stimuli into the economy and kept interest rates low to ease the economic repercussions of the Corona virus.