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Gold futures on Friday headed higher, looking to extend gains for a third straight session as enthusiasm for bullion gained steam amid muted moves in yields for government bonds.
Commodity experts also say that stimulus measures by global central banks, including the Federal Reserve and the European Central Bank, to limit the economic harm from the COVID-19 pandemic, have been supportive of higher prices for precious metals.
“In this new world in which both the ECB and the Fed continue to unleash new stimulus packages, dramatically increasing the liquidity of cash, combined with a lot of uncertainty, gold will remain in high demand and playing a key role in any investor’s portfolio,” wrote Carlo Alberto De Casa, chief analyst at ActivTrades in a Friday research note.
Gold for June delivery GCM20, +0.66% on Comex rose $13, or 0.7%, to $1,758.40 an ounce, after gaining 0.4% on Thursday. For the week, the yellow metal is on track for a more than 3% gain, according to FactSet data. The metal is trading around its highest level since April 14.
Prices for gold have also been partly aided by muted government bond yields, which compete with bullion for haven flows. The 10-year Treasury yield TMUBMUSD10Y, 0.597%, for example, was around 0.6% early Friday, down from 0.67% at the same point last week. Bond yields fall as prices rise.
May silver SIK20, +0.67%, meanwhile, tacked on 13 cents, or 0.8%, to $15.485 an ounce, following an advance of about 0.1% on Thursday, putting gold’s sister metal on track for a weekly gain of 1.2%.
