Gold prices rose on Friday as concerns about a second wave of coronavirus infections dented hopes for a swift global economic recovery and drove investors towards the safe-haven metal.

Spot gold was up 0.5 per cent at $1,731.49 per ounce by 0750 GMT. US gold futures also rose 0.5 per cent, to $1,740.10.

“Gold prices seem to be in somewhat of an equilibrium at the moment. Balanced between geopolitical and COVID-19 concerns on one side, and economic recovery hopes and dollar strength on the other,” said Jeffrey Halley, senior market analyst at OANDA.

“Gold continues to see patient buyers on dips to $1,710 to $1,715 an ounce, with equally patient sellers lying in wait on any spikes towards $1,740.”

More than 8.38 million people have been infected by the coronavirus globally, with China reporting 32 new virus cases on Friday, 25 of which were in the capital Beijing.

A surge in fresh infections in several US states and the imposition of travel curbs in Beijing to stop a new outbreak have renewed fears of a delay in economic recovery as countries reopen after conronavirus-induced lockdowns.

Simmering geopolitical tensions between North Korea and South Korea, and India and China also offered some support to bullion.

US President Donald Trump on Thursday renewed his threat to cut ties with China, a day after his top diplomats held talks with Beijing amid souring relations.

Goldman Sachs raised its 12-month gold price view to $2,000 per ounce, citing currency debasement fears and higher levels of economic uncertainty due to the coronavirus crisis.

Meanwhile, the dollar index held steady on Friday and was heading for its biggest weekly gain in a month.

Elsewhere, palladium dropped 0.9 per cent to $1,907.99 per ounce and was on track for a second consecutive weekly decline.

Silver gained 0.3 per cent to $17.55, and platinum rose 0.8 per cent to $810.26.


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