June 16, 2020 / 1:35 AM / 24 days ago

PRECIOUS-Gold steady as dollar eases; rising equities cap upside

    June 16 (Reuters) - Gold steadied on Tuesday supported by a
weaker U.S. dollar, which fell after the Federal Reserve
announced it would buy individual corporate bonds in the
secondary market, although an uptick in risk appetite limited
bullion's advance.
                
    FUNDAMENTALS    
    * Spot gold        was flat at $1,725.23 per ounce, as of
0052 GMT.
    * U.S. gold futures        rose 0.4% to $1,733.60 per ounce.
    * The dollar index        fell 0.2% against its rival,
making gold less expensive for holders of other currencies.
      
    * The Fed on Monday announced tweaks to its bond buying
program, widening the range of eligible assets to include all
U.S. corporate bonds that satisfied certain criteria.
            
    * Asian stocks were set to follow Wall Street's overnight
surge on Tuesday, as investors cheered the Fed's move to support
financial markets.            
    * The Bank of Japan is expected to keep monetary settings
steady at its policy meeting on Tuesday, as it gauges the
effects of stimulus steps already announced to support its
economy.             
    * Gold tends to benefit from widespread stimulus measures
from central banks as it is widely viewed as a hedge against
inflation and currency debasement.
    * Global cases of the novel coronavirus reached over 8
million on Monday, as infections surge in Latin America and the
United States and China grapple with fresh outbreaks.
            
    * The U.S. economy will experience a "significant, historic"
contraction in the second quarter before it starts to rebound,
and unemployment will remain elevated at the end of 2020, Dallas
Federal Reserve President Robert Kaplan said on Monday.
            
    * Palladium        climbed 1.5% to $1,936.93 per ounce and
platinum       rose 0.7% to $817.20, while silver        fell
0.4% to $17.37.

    
    DATA/EVENTS (GMT)
    
0600  Germany  HICP Final YY              May
0600  UK       ILO Unemployment Rate      April
1230  US       Retail Sales MM            May
1315  US       Industrial Production MM   May

 (Reporting by Brijesh Patel in Bengaluru; Editing by Amy Caren
Daniel)
  
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