Sumary of Gold gains as new COVID-19 variant lifts safe-haven demand:
- Article content Gold prices gained on Friday, as concerns over the spread of a newly identified coronavirus variant boosted the metal’s safe-haven appeal, although bullion was set for a weekly drop on growing bets the U.S. Federal Reserve could turn more hawkish.
- U.S. gold futures advanced 0.8% to $1,797.70. The variant, detected by scientists in South Africa, may be able to evade immune responses and has prompted Britain to hurriedly introduce travel restrictions on the African nation.
- Article content Further aiding gold’s climb, the dollar index eased 0.2% from a 16-month peak scaled earlier this week, while U.S. benchmark 10-year Treasury yields also weakened.
- “A rate hike cycle is generally negative for gold, but we have to keep an eye on this new COVID variant – if it spreads to the United States, that could weaken growth and I can’t see the Fed hiking rates in that environment,” Stephen Innes, managing partner at SPI Asset Management said.