(Reuters) – Gold prices fell on Friday as optimism over initial plans to reopen the U.S. economy lifted risk appetite, but heightened worries over the worst recession in decades kept bullion on track for its second straight weekly rise.

Spot gold eased 0.8% to $1,704.52 per ounce by 0346 GMT. The metal was up about 0.9% for the week so far. U.S. gold futures slipped 0.7% to $1,719.80 per ounce.

While there is a “temporal mismatch” between the financial markets and the real economy, the reopening of the U.S. economy is suggesting a recovery may come a lot quicker than expected, in turn weighing on gold, said Stephen Innes, chief market strategist at financial services firm AxiCorp.

U.S. President Donald Trump proposed guidelines on Thursday under which U.S. state governors could act to revive the U.S. economy from its coronavirus shutdown.

Asian stocks look set to bounce on Friday, following Wall Street’s lead overnight on the plans to restart the world’s biggest economy.

Gold’s fall came despite a lower dollar, also considered a safe haven, which slipped following a media report on early signs that a COVID-19 treatment drug was working.

Investors also took stock of data from China, which showed the country’s economy shrank for the first time since at least 1992 in the first quarter due to outbreak, although industrial output fell a less steeper-than-expected 1.1% in March from a year earlier.

On the technical front for gold, AxiCorp’s Innes said, “If we get a substantial move to $1,700 today…gold can dip a little significantly lower on stop losses getting triggered.”

However, massive stimulus measures from global central banks to weather the economic toll from the coronavirus limited gold’s downside.

The U.S. Federal Reserve’s balance sheet increased to a record $6.42 trillion this week as it used its nearly unlimited buying power to soak up assets to keep markets functioning amid an abrupt economic free fall.

Gold tends to benefit from widespread stimulus from central banks, as it is often seen as a hedge against inflation and currency debasement.

Further, the global pandemic, which has infected 2.07 million globally and killed 138,482, according to a Reuters tally as of Tuesday continued to fuel strong demand for physical gold, analysts said.

Palladium gained 1.9% to $2,193.69 an ounce, while silver slipped 1.9% to $15.32 per ounce and platinum fell 1.2% to $773.63 per ounce.