Gold poised for biggest weekly gain since August

Although the gold price has fallen to a level close to $ 4,060 per ounce, it is preparing to increase by approximately 5 percent on a weekly basis. The fact that some investors sold the precious metal to cover their losses in the stock markets curbed this rise to some extent.

The decline in US technology stocks on Thursday continued in Asian markets on Friday. Investors predict that Democrats' overwhelming majority in Congress will lead to a shift in regulations on artificial intelligence after many voters expressed opposition to data centers. The crash increased demand for safe-haven Treasuries and pushed yields to the lowest levels since early September.

“The relative resilience of gold despite the sharp decline in equities is encouraging,” said Christopher Wong, a strategist at Oversea-Chinese Banking Corp. While Wong stated that the precious metal "may be gradually regaining some of its safe-haven appeal," he noted that if the weakness in stocks continues, it will be an important test of how long gold can resist.

Gold prices had risen following the midterm election results; Because investors predicted that the Democrats who would take office would try to end the Iran war, which fueled inflation by increasing energy prices. Investors also predict that divided power will curb President Donald Trump's fiscal agenda and limit additional spending and borrowing.

After weekly jobless claims fell short of all forecasts, traders will be watching U.S. employment data due today and the consumer price index due next week for new clues about the direction of the economy and interest rates.