By Barani Krishnan
Investing.com – Gold prices held rock-steady above the $1,500 level critical to market longs as futures of the yellow metal posted the first weekly loss in seven on Friday after profit-taking on the recent run-up fueled by the coronavirus scare.
Gold futures for April delivery on New York’s COMEX settled up $3.40, or 0.2%, at $1,573.40 per ounce, gaining for a third day in a row. But on a weekly basis, April gold fell 0.6%, the first time it has slid in a week since mid-December, Investing.com data showed. The drop came at the end of a relatively choppy week in gold as some investors took profit on recent gains after the global scare over the coronavirus eased somewhat.
Spot gold, which tracks live trades in bullion, was up $5.62, or 0.4%, at $1,572.18 by 2:40 PM ET (19:40 GMT). On a weekly basis, the bullion indicator was down 1.1%, its first slide in three weeks.
Gold’s weekly loss was mitigated by a drop in U.S. stock markets, which ignored a bullish U.S. jobs report on Friday to tumble over lingering concerns about China’s struggle to contain the viral pandemic that has already killed more than 630 people and infected 31,000 more in the world’s second-largest economy.
“Gold is still a hedge for political, economic and stock-market headlines that can cause quick reversals,” said George Gero, precious-metals analyst at RBC Wealth Management in New York. “Expect the $1,550-$1,600 trading range in gold to continue.”
Gold prices came within striking range this week of the $1,600 level as investors initially piled into the yellow metal for a hedge against the weakness in global markets.