(Reuters) - Gold prices fell on Friday as rival safen-haven U.S. dollar took some shine off the precious metal amid rising coronavirus cases, though concerns about inflation due to easy central bank policies across the globe curbed loses.
Spot gold was down 0.5% at $1,752.91 per ounce by 10:55 a.m. (1454 GMT). U.S. gold futures fell 0.4% to $1,762.90 per ounce.
“Today we have to give it to the dollar. Gold is being weighed down by a stronger dollar due to the latter’s safe-haven appeal,” said Edward Moya, senior market analyst at broker OANDA.
“However, we might see gold breaking the $1,800 level... fundamentals for gold are still quite strong with rising coronavirus cases, no vaccines yet and stimulus from major central banks globally leading to concerns of inflation.”
Gold is perceived as a safe-haven and used as a hedge against inflation and currency debasement.
Gold prices climbed to their highest level since October 2012 on Wednesday and are still on track for their third consecutive weekly rise as a jump in virus cases spooked markets.
More than 9.62 million people have been reported to be infected by the novel coronavirus globally, as the United States set a new record for a one-day increase in coronavirus cases.
Fundamentals for gold remain strong as easy monetary policies and a string of stimulus measures by major central banks to stem the virus impact have sparked concerns of inflation.
“If central banks continue to print money with quantitative easing and easing monetary policy, gold can continue to rally,” ActivTrades chief analyst Carlo Alberto De Casa said.
In other metals, palladium rose 0.5% to $1,851.51 per ounce, but was on track for its biggest weekly decline since the week ending May 1.
Platinum fell 1.8% to $789.48 an ounce and silver dropped 2% to $17.53.
Reporting by Diptendu Lahiri in Bengaluru; editing by Emelia Sithole-Matarise