Gold on course for third weekly gain as coronavirus cases spike

Gold prices steadied on Friday en route to a third straight weekly gain as a spike in coronavirus cases dashed hopes of a quick economic recovery.

Spot gold was little changed at $1,761.17 per ounce by 1219 GMT, having soared to its highest since Oct. 2012 at $1,779.06 on Wednesday, putting it on course for a 1.1% gain for the week.

US gold futures were up 0.1% at $1,772.70 per ounce.

"Gold is finding tailwind from concerns about a second wave of infections as some US states see the number of new cases soar," Commerzbank analysts said in a note.

"The expansion of central bank liquidity and public debt resulting from this continues to argue for robust demand for gold as a safe haven and store of value," they added.

Coronavirus cases have been rising across the United States, while over 9.51 million people have been infected globally, according to a Reuters tally.

Increased central bank and government stimulus measures globally to cushion economies from the blow of the COVID-19 pandemic have helped gold prices gain 16% this year.

"If central banks continue to print money with quantitative easing and easing monetary policy, gold can continue to rally," ActivTrades chief analyst Carlo Alberto De Casa said.

Technically, gold is in a consolidation phase and could see further rallies if investors become more risk averse, he added.

Bullion is widely seen as a hedge against inflation and currency debasement.

The metal held its ground despite a steady dollar and an uptick in European shares.

Reflecting positive sentiment, holdings of the SPDR Gold Trust exchange-traded fund held near a more than seven-year peak.

Palladium rose 0.2% to $1,845.19 per ounce, platinum gained 0.5% to $807.42 per ounce and silver fell 0.2% to $17.84 per ounce.