Gold is heading for a third weekly advance, with the haven metal gaining on anxiety about the spread of Covid-19 variants and prospect of prolonged dovish monetary policy.
Bullion is winning back investors after a bleak June, with fears the world’s exit from the Covid-19 pandemic may be more fraught than anticipated.
Renewed virus fears are a boon for bullion because governments may have to extend monetary support to still-fragile economies.
Those risks were underscored this week by US Federal Reserve minutes that highlighted continued uncertainties and a rise in US jobless claims.
China’s surprise hint that it could unleash more liquidity to the economy also added to the sense that headwinds to a global recovery remain strong.
“Commodities came under pressure as policy makers around the world flagged risk to their economies from rising cases of Covid-19 variants,” Australia & New Zealand Banking Group said.
“Demand for safe haven assets rose following a lift in US initial jobless claims.”
