Gold set for third straight weekly gain as virus cases soar

Bank of Japan Governor Haruhiko Kuroda said second-round effects of the pandemic could hurt its economy "considerably", signalling the bank's readiness to ramp up stimulus again.

Lower interest rates and stimulus measures tend to benefit gold, viewed as a hedge against inflation and currency debasement.

"Given the macro backdrop, sentiment in the gold market is positive, and this is illustrated in the continual increase in exchange-traded fund holdings," said ING analyst Warren Patterson.

Read Also: Australian leaders meet to discuss coronavirus plans amid new outbreak

Holdings of the SPDR Gold Trust ETF stood at more than seven-year highs. 

Palladium gained 0.3% to US$ 1,847.05 per ounce, but was heading for its worst week since May 1. Platinum was flat at US$ 803.52. And Silver fell 0.9% to US$ 17.71.