PRECIOUS-Gold rises as weaker dollar, recovery fears lift demand
Reuters
Published Aug 13, 2020 02:54
Aug 13 (Reuters) - Gold prices rose on Thursday, holding
firm above the key $1900 per ounce level, as a weaker U.S.
dollar and concerns over the global economic recovery from the
mounting COVID-19 cases boosted demand for the safe-haven metal.
FUNDAMENTALS
* Spot gold XAU= was up 0.7% at $1,930.78 per ounce by
0034 GMT. U.S. gold futures GCv1 eased 0.5% to $1,940.
* The dollar index .DXY fell 0.2% against its rivals,
making gold less expensive for holders of other currencies.
USD/
* Benchmark 10-year Treasury yields dipped from one-month
highs, reducing the opportunity cost of holding non-interest
bearing gold. US/
* The U.S. economic recovery will be slow until the
coronavirus is under control, and Americans will have to manage
life with the virus for at least the next several months, three
Federal Reserve policymakers said on Wednesday. * More than 20.45 million people have been reported to be
infected by the coronavirus globally and 743,229 have died,
according to a Reuters tally. * White House and top Democrats in Congress may not be able
to reach a deal on coronavirus aid, with the stalemate blocking
relief to tens of millions of Americans, U.S. Treasury Secretary
Steven Mnuchin said. * U.S. consumer prices rose more than expected in July, with
a measure of underlying inflation increasing by the most in
29-1/2 years amid broad gains in the costs of goods and
services. * Gold is seen as a hedge against inflation and the fear of
currency debasement.
* Asian stocks were set for broad gains on Thursday after
Wall Street's S&P 500 index briefly touched record highs.
MKTS/GLOB
* Silver XAG= rose 0.6% to $25.71 per ounce, platinum
XPT= gained 0.7% to $937.84 and palladium XPD= climbed
1.2%to $2,156.55.
DATA/EVENTS (GMT)
0600 Germany CPI Final July
0600 Britain GDP Prelim Q2
1230 US Import Prices MM July
1230 US Initial Jobless Claims
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Written By: Reuters
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