* Gold heads for its first weekly gain in three
* Dollar set for its biggest weekly fall in eight weeks
* Platinum up over 10% for the week (Adds comments, updates prices)
By Eileen Soreng
Feb 12 (Reuters) – Gold dipped on Friday with a firmer dollar, while platinum was headed for its biggest weekly rise since March 2020 on expectations for a revival in auto sector demand.
Spot gold eased 0.3% to $1,819.16 per ounce by 2:58 p.m. EST (1958 GMT). U.S. GCv1 settled down 0.2% at $1,823.20.
The dollar was up about 0.1%, but was set for its biggest weekly loss in eight. USD/
The macro backdrop remains supportive, with gold prices “likely to resume their uptrend in coming weeks given our expectations for the dollar to weaken further alongside real yields remaining low or negative,” said Standard Chartered (LON:) analyst Suki Cooper.
“Market focus remains on the size and timing of the U.S. fiscal stimulus, inflation expectations and progress of the vaccine rollout,” she added.
Gold was also headed for its first weekly gain in three, helped by expectations for a $1.9 trillion U.S. coronavirus relief package, given its status as a hedge against inflation likely spurred by widespread stimulus. far as this stimulus goes it’s positive for gold but it’s not new… The market is not reacting to it at the moment,” said HSBC analyst James Steel, adding gold prices are likely to average $1,907 for the year.
Spot platinum rose 1% to $1,247.28 per ounce after jumping as high as $1,268.88 on Thursday, en route to an over 10% weekly rise. Palladium gained 1.9% to $2,390.36.
Both metals are used by automakers in catalytic converters to clean car exhaust fumes.
“There’s a concern about a tight market for platinum. … The trend is bullish, and people will be happy to keep buying the dip,” said Fawad Razaqzada, market analyst with ThinkMarkets. rose 1% to $27.21 per ounce. has seen an influx of fresh interest following a brief spike in spot prices triggered by a retail frenzy last week. Analysts are also betting on further gains this year from industrial demand. GOL/ETF .
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