* Gold has increased more than 2.6% so far this week
* Initial weekly US unemployment claims data expected at 12:30 p.m. GMT
* Oil prices win hoping production will be reduced
* Interactive graph for tracking the global spread: open tmsnrt.rs/3aIRuz7 in an external browser
By Brijesh Patel
April 9 (Reuters) – Gold prices rose 1% Thursday on safe haven purchases before a long weekend and a crucial meeting of major oil producers amid generally more positive markets, motivated by l hope that the coronavirus pandemic is about to peak.
Spot gold rose 0.9% to $ 1,660.38 an ounce to 1,205 GMT after hitting a four-week high of $ 4,671.40 on Tuesday. It increased by more than 2.6% this week. Most markets will be closed on Good Friday April 10.
Gold futures in the United States rose 1.3% to $ 1,706.50.
Gold has occasionally increased in tandem with the stock markets recently, with larger massive sales also infiltrating precious metals, with investors covering losses elsewhere.
“The yellow metal continues to benefit from this calmer environment, even though the risk appetite is improving,” said Craig Erlam, analyst at OANDA, in a note.
“The market is flooded with liquidity from central banks around the world, which is driving up the price of gold during this very uncertain time.”
ETF gold holdings rose in March to a record 3,185 tonnes, valued at $ 165 billion, the World Gold Council announced on Wednesday.
“The virus has pushed (central banks) towards an aggressive relaunch of monetary policy and this is pushing investors towards gold. The demand for safe haven securities has increased, we are seeing many inflows in exchange traded funds, “said Giovanni Staunovo, analyst at UBS.
European stock markets advanced and oil prices rose Thursday according to OPEC expectations and its allies will agree to cut production to support prices that have fallen due to a collapse in demand caused by a coronavirus.
“Whatever decision is made, the volatility of the oil market will increase later, which will affect gold via inflation expectations,” said Staunovo.
Continuing the lure of gold, the dollar lost 0.1%, on the way to a weekly decline.
More than 1.47 million people have been reported infected with the new coronavirus worldwide and 87,760 have died.
US President Donald Trump has said that Americans may be at the top of the “curve” and that he would like to reopen the economy with a “big bang,” but the death toll had to go down first.
Investors were also expecting data on US unemployment claims later today, which is expected to jump to 15 million in the past three weeks.
Elsewhere, palladium edged up 0.1% to $ 2,177.10 an ounce, while platinum rose 0.1% to $ 730.39 after reaching a three-week peak during the last session.
Silver rose 0.2% to $ 15.08. (Report by Brijesh Patel in Bengaluru; Edited by Emelia Sithole-Matarise, Ken Ferris and David Clarke)