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PRECIOUS-Gold subdued after Trump's discharge, weak dollar cap losses

Published 06/10/2020, 03:00 pm
Updated 06/10/2020, 06:48 pm
© Reuters.
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* Asian stock markets hit two-week high

* Interactive graphic tracking global spread of coronavirus: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/ (Adds comments, updates prices)

By Eileen Soreng

Oct 6 (Reuters) - Gold prices eased on Tuesday, as equities gained following U.S. President Donald Trump's discharge from hospital after treatment for a coronavirus infection, though a softer dollar cushioned the bullion's further decline.

Spot gold XAU= fell 0.1% to $1,910.50 per ounce by 0722 GMT. It had hit $1,918.36 on Monday, highest since Sept. 22.

U.S. gold futures GCv1 were down 0.1% at $1,917.80.

"Equities are trading well today and because of that we are seeing limited move in gold," said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade.

However, "the dollar is on a backfoot and that could prompt some buying to return in gold... As long as gold is above the $1,900 we can expect some recovery in bullion."

Asian stock markets rose to a two-week high after the U.S. president returned to the White House from hospital following treatment for COVID-19 and on rising prospects for a fresh U.S. stimulus package. MKTS/GLOB the severity of Trump's illness has been the subject of intense speculation. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin were preparing to continue talks on the new coronavirus relief package again on Tuesday. was also weighed down by mild profit-booking, analysts said.

Meanwhile, a weaker dollar and progress on fresh stimulus talks limited gold's decline. The dollar index .DXY was down 0.1% against rivals making gold cheaper for holders of other currency. USD/

"Ultimately gold should still go up since the dollar has room to weaken," said Stephen Innes, chief market strategist at AxiCorp.

The stimulus package is obviously going to be good for gold and there is still a lot of election risk to be delt with, he added.

Among other precious metals, silver XAG= fell 0.2% to $24.30 per ounce, palladium XPD= inched 0.1% lower to $2,360.57, while platinum XPT= eased 0.3% to $894.62.

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