Gold prices traded modest on Friday, supported by concerns about an economic downturn due to the continued rise in coronavirus cases in Europe and the United States.
However, the significant drop recorded earlier in the week was due to positive reports on the Pfizer vaccine resulting in the yellow metal trade heading into its worst week since September.
At the beginning of the European session, the precious metal traded hovering around the price level of $ 1,878 per ounce, while gold futures were stable at $ 1,877 per ounce (3.30pm Malaysian time).
Concerns over the economic downturn resurfaced after coronavirus adviser to President-elect Joe Biden, Dr Michael Osterholm, said closures in the United States for 4 to 6 weeks could help control the spread of the epidemic.
If the closure is implemented again, the US economy may be affected even if not all sectors of the economy are closed.
Data from Reuters shows that coronavirus cases in the United States increased more than 100% in 13 states in two weeks. This further strengthens the reason for the Biden administration to implement more stimulus measures.
