Gold set to post gains
Pakistan (Oct 18) Gold edged higher on Friday and was poised for a second straight week of gains as persistent fears over the health of the world economy took a toll on global equities and the dollar, bringing in safe-haven bids for the metal.
Platinum and palladium were the biggest precious metal gainers of the day, recovering about 2 percent from sharp overnight losses.
Both metals have been pressured lower on concerns about global growth and weak equity markets, said HSBC analyst James Steel, noting that investors have built sizable long positions in platinum and palladium. But the lower prices could also spark physical buyers looking for bargains, he said.
“Although we saw no evidence of industrial or end user buying on Thursday’s price drop, we anticipate that physical buying will materialize should the market decline further.” Platinum rose 1.2 percent to $1,251.70 an ounce by 0618 GMT.