Metals Stocks: Gold pulls back, but heads for weekly gain

Rising inflationary pressures may also “erode the dollar’s purchasing power, meaning gold holds its value while the greenback depreciates” he told MarketWatch.

On Friday, December gold GCZ20, -0.36% GC00, -0.36% declined by $ 6.70, or 0.3%, to $ 1,957.60 an ounce, following a rise of 0.5% Thursday.

December silver SIZ20, -0.48% SI00, -0.48%, meanwhile, gave up 16 cents, or 0.5%, at $ 27.135 an ounce.

For the week, gold is aiming for a 1.2% gain, while silver is set for a gain of 1.6%, based on the most-active contract settlements last Friday, FactSet data show.

Read:Volatility in oil and gold may offer more opportunity than risk

Also see:Lumber futures climb to a record and more than double for the year, as pandemic boosts demand

Worries about inflated valuations, particularly in the technology-related sectors, drove the Nasdaq Composite Index COMP, +0.33%   into correction territory on Tuesday, after weeks of gains, and stocks have struggled to claw back those losses thus far. U.S. benchmark stock indexes were lower for the week.

Bullion, which has ascended in price amid the global viral outbreak, has benefited recently from newfound volatility in the stock market after the precious metal’s coronavirus-fueled advance stalled out over the past few weeks.

Gold investors make the case that uncertainty around the U.S. presidential elections on Nov. 3, with incumbent President Donald Trump trailing former Vice President Joe Biden in national polls, and concerns about the virus and geopolitical tensions, provide a host of possible catalysts for gold to rise.

Looking at the technical picture, Otunuga said a breakout or breakdown “opportunity is in play” with support level of $ 1,910 and resistance level of $ 1,985 “acting as key levels of interest. Weakness below $ 1,910 may trigger a drop towards $ 1,890 and $ 1,865, respectively.”

In other metals trading Friday, December copper HGZ20, +1.61%  tacked on 1.7% to $ 3.0485 a pound, trading around 0.5% for the week.

October platinum PLV20, +0.29%  added 0.2% to $ 943 an ounce, with prices up about 5% for the week. December palladium PAZ20, +0.65%  rose 0.5% to $ 2,342.80 an ounce, trading little changed for the week.