Gold nears $1,900, heads for biggest weekly gain in 4 months

Gold prices rose in European trade on Friday, to extend gains for the sixth day, near the $1,900 barrier for the first time since 2011, while on the cusp of the largest weekly gain in 4 month, as the US dollar fell against its rivals, and growing safe-haven demand.

Gold prices rose 0.5% to $1,897.83 an ounce, after opening at $1,887.37, with a session-low of $1,881.42.

Gold gained 0.9% yesterday, posting its fifth straight daily gain, and hit a 9-year high of $1,898.35 an ounce.

Gold prices have gained 4.9% so far during this week, to head for the seventh straight weekly gain, and the largest since March.

The dollar index fell 0.2% today, to extend its losses for the sixth day, and hit a 2-year low of 94.57 points, which comes in favor of gold and other dollar-denominated metals prices.

This drop in the US dollar came on investors' risk-appetite, especially after the EU leaders agreed on an economic recovery fund, and positive news about the coronavirus candidate vaccines.

The US dollar is also being weighed down by doubts over the new US economic stimulus package, due to clashes between Democrats and Republicans over the next round amount.

Gold prices drew support from the ongoing geopolitical tensions between the US and China, and inflation expectations after the launch of huge stimulus packages in most parts of the world.

Gold stocks at the SPDR ETF rose 2.04 metric tonnes yesterday, with the total at the highest level in May 2013 of 1,227.05 metric tonnes.