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PRECIOUS-Gold slips on dollar rebound; platinum rally pauses

Published 2021-02-12, 05:35 a/m
© Reuters.
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* Gold up 0.2% this week

* Platinum set for best week since early December

* Gold could rise to $1,950/oz this year -analyst (Updates prices, adds quotes)

By Nakul Iyer

Feb 12 (Reuters) - Gold slipped as the dollar rebounded on Friday while platinum took a breather after expectations of a rebound in industrial demand drove a rally to a more than six-year peak and put it on course for its best week in two months.

Spot gold XAU= lost 0.5% to $1,816.40 an ounce by 1221 GMT and U.S. gold futures GCv1 were down 0.6% at $1,816.30.

"The inverse relationship between gold and the dollar has been strong recently and the rebound in the dollar has had a negative impact," said David Madden, market analyst at CMC Markets UK.

The dollar .DXY edged up 0.2%, reducing gold's appeal to buyers holding other currencies. the short term, there is little to suggest that the prospects for gold will brighten, as this would require inflation risks to increase noticeably," Commerzbank (DE:CBKG) analysts said in a note.

Gold is often seen as a hedge against inflation.

Still, expectations for an economic stimulus package in the United States helped to keep gold prices on course for a first weekly rise in three. thesis for the next year or two is that equities and gold are going to do well because of inflationary expectations and monetary and fiscal stimulus remain supportive for both," said Hitesh Jain, lead analyst at Mumbai-based Yes Securities, adding that the metal could rise to $1,950 this year.

Spot platinum XPT= dropped 1.3% to $1,219.13 an ounce after scaling a more than six-year peak of $1,268.88 on Thursday. The autocatalyst metal was also set for its best week since early December, gaining more than 8%.

"Reports that some futures and derivative exchanges have increased their margin requirements have put the brakes on the demand for platinum," CMC's Madden said. expectations of a rebound in industrial production and the automotive sector this year should lift the metal, he added.

Silver XAG= rose 0.3% to $27.04 an ounce and palladium XPD= gained 0.3% to $2,351.47.

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