June 12, 2020 / 10:39 AM / a month ago

PRECIOUS-Gold set for biggest weekly gain since April on bearish economic outlook

    * Gold up about 3% so far this week
    * Platinum set for biggest weekly fall since end-April

 (Adds comment, updates prices)
    By K. Sathya Narayanan
    June 12 (Reuters) - Gold rose on Friday as fears over the
resurgence of coronavirus infections and a grim economic outlook
by the U.S. Federal Reserve boosted demand for bullion, leading
the metal towards its biggest weekly gain since early-April.
    Spot gold        was 0.5% higher at $1,736.26 per ounce by
1303 GMT and has jumped about 3% so far this week, heading for
its its biggest gain since the week of April 10. 
    U.S. gold futures        gained 0.5% to $1,748.20. 
    "One of the reasons has been the statement form the FOMC and
the testimony of the (Fed Chair) Jerome Powell, painting a
darker picture of the U.S. economy," said Quantitative Commodity
Research analyst Peter Fertig. 
    Also, "there is talk about a second wave especially after
cases of new infections of the virus have risen again in some
countries. A warning which many people ignored."             
    Meanwhile, the dollar        was on track to record its
fourth week of declines, making gold cheaper for investors using
other currencies.       
    Earlier this week, Fed policymakers projected the U.S.
economy to shrink 6.5% in 2020, while data showed that Britain's
economy shrank by 20.4% in April.                          
    "There is still significant uncertainty about how the
economic recovery will play out and any disappointments could
support the gold price," Robin Bhar, an independent consultant
said in a note.
    Gold is considered a safe haven during times of economic
uncertainty.
    Elsewhere, palladium        rose 1.1% to $1,943.40 per
ounce, while silver        declined 0.5% to $17.61. 
    Platinum        climbed 1.4% to $822.54 an ounce, but was
set for its biggest weekly fall since end-April.

 (Reporting by K. Sathya Narayanan in Bengaluru, editing by
Louise Heavens, Kirsten Donovan)
  
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