Metals Stocks: Gold gains ground, but stays on track for second weekly decline

Gold futures rose Friday, but remained on track for a weekly loss, finding support after indiscriminate selling across financial markets weighed even on some traditional havens.

Gold for April delivery GCJ20, +0.99% on Comex rose $23, or 1.5%, to $1,502.30 an ounce, while May silver SIK20, +4.38% was up 46.6 cents, or 3.6%, to $12.60 an ounce.

Gold has “rebounded alongside the improvement in risk appetite, while falling for much of the week as central banks around the world threw the kitchen sink at the coronavirus,” said Craig Erlam, senior market analyst at Oanda, in a note.

“Their efforts are not in vain but we’re not seeing the surge in demand for gold that we’ve seen in the past when the market is flooded with liquidity. I feel there may be a lag effect, with investors still liquidating gold positions to fill holes elsewhere but only time will tell,” he said.

Stock-index futures pointed to a solidly higher start for Wall Street as a global equity rout appeared to pause as central banks rolled out additional stimulus measures and governments weighed fiscal responses. A break in a sharp rally by the U.S. dollar may have also lent support to the yellow metal.