Gold targets fifth straight weekly gain

Gold prices rose in European trade Friday, to resume gains pausing yesterday on profit-taking from a 9-year peak, on the cusp of the fifth straight weekly gain on strong safe-haven demand.

Gold prices rose 0.35% to $1,807.06, an ounce, after opening at $1,800.8, with a session-low of $1,795.85.

Gold fell 0.3% yesterday, posting its first daily loss in 6 days, on profit-taking from the highest since September 2011 at $1,818.14.

Gold prices have gained 1.8% so far during this week, to head for the fifth straight weekly gain on strong safe-haven demand, amid the growing risks in global markets.

Chief among these risks are the spike in coronavirus infections in the US, which is expected to delay the US economy's recovery from the coronavirus pandemic damages, in addition to the gloomy outlook for most major economies, especially in the euro area.

The EU on Tuesday slashed its growth forecast for 2020 to a contraction rate of 8.3% from 7.5% in the previous estimates, followed by a recovery in 2021 by 5.8% from 6.0%.

Several US Federal Reserve officials have warned from the coronavirus impact on the US economy, which weighs down on consumer spending and the labor market, and will require the Fed to inject more stimulus.

In the UK, the Chancellor of the Treasury, Rishi Sunak, revealed a £30 billion ($38 billion) package of government stimulus to support the British economy from further impacts of coronavirus, and to avoid a violent unemployment crisis.

Gold stocks at the SPDR ETF fell 1.75 metric tonnes yesterday, the first drop since June 25, with the total at 1,200.82 metric tonnes, and pulled back from the highest level since May 2013 of 1,202.57 mt.