May 12, 2020 / 10:55 AM / 17 days ago

PRECIOUS-Gold gains as dollar rally pauses, new virus cases mount

 (Updates prices)
    * Equities fall on fears of coronavirus resurgence
    * For an interactive graphic tracking the global spread,
open tmsnrt.rs/3aIRuz7
 in an external browser

    By Brijesh Patel
    May 12 (Reuters) - Gold prices rose on Tuesday as the dollar
slipped from a more than two-week high, amid worries of a
resurgence in coronavirus infections in some countries and
lingering trade tensions between the United States and China.
    Spot gold        was up 0.4% at $1,702.96 per ounce by 1212
GMT. U.S. gold futures        rose 0.6% to $1,707.90 per ounce.
    "We're seeing a little softness in the dollar this morning
which is providing some support for gold," OANDA analyst Craig
Erlam said.
    "Broadly speaking, little has changed for gold. It continues
to consolidate around $1,700 per ounce and has done so for
weeks. There's little to suggest this is going to change in the
near-term."
    Offering some respite to gold, the dollar index        fell
0.4% after earlier climbing to its highest in more than two-
weeks.       
     The dollar is considered a safe store of value rivalling
gold in times of economic and political uncertainty. 
    The mood in wider financial markets remained fragile, as the
Chinese city of Wuhan, where the pandemic originated, reported
new cases since its lockdown was lifted - raising concerns about
a second wave of infections.                         
    Markets are also keeping a wary eye on China's trade
relations with the United States after President Donald Trump
said he was not interested in re-negotiating the "Phase 1" trade
deal.             
    "The spot price of gold is consolidating just above the
threshold of $1,700 in a scenario where investors remain bullish
on gold but require fresh stimuli to generate another rally,"
ActivTrades chief analyst Carlo Alberto De Casa said in a note.
    Gold has risen over 12% so far this year as central banks
around the world rolled out a wave of stimulus measures to limit
economic damage caused by the coronavirus outbreak.
    Globally, an estimated $15 trillion worth of stimulus has
already been unleashed to cushion the blow from the pandemic,
which has infected more than 4.19 million people around the
world and killed 285,120.                 
    Gold tends to benefit from widespread stimulus measures from
central banks because it is widely viewed as a hedge against
inflation and currency debasement.
    Meanwhile, U.S. Federal Reserve officials talked down the
prospect of negative rates.                        
    Among other precious metals, palladium        dropped 0.9%
to $1,878.34 per ounce and silver        slipped 0.1% to $15.54,
while platinum        gained 1.8% to $770.47.
    

    
 (Reporting by Brijesh Patel in Bengaluru; Editing by Emelia
Sithole-Matarise and David Evans)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below