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PRECIOUS-Gold eases as dollar firms; virus fears cap losses

Published 04/08/2020, 10:46 am
Updated 04/08/2020, 10:48 am
© Reuters.
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Aug 4 (Reuters) - Gold prices edged lower on Tuesday as the dollar strengthened and risk appetite improved after positive U.S. economic data, while fears over surging coronavirus cases limited losses for the safe-haven metal.

FUNDAMENTALS

* Spot gold XAU= was down 0.2% at $1,973.54 per ounce by 0026 GMT. It hit an all-time high of $1,984.66 in the previous session.

* U.S. gold futures GCv1 rose 0.2% to $1,989.20.

* The dollar index .DXY rose 0.1% against its rivals, crawling further away from a more than two-year low hit last week. A stronger greenback makes gold more expensive for holders of other currencies. USD/

* U.S. manufacturing activity accelerated to its highest level in nearly 1-1/2 years in July as orders increased despite a resurgence in new COVID-19 infections. Asian shares were on track to open higher on Tuesday, after strong manufacturing data and gains in tech stocks boosted global equities. MKTS/GLOB

* More than 18.19 million people have been reported to be infected by the novel coronavirus globally and 689,871​ have died, according to a Reuters tally. The World Health Organization warned on Monday that there might never be a "silver bullet" for COVID-19 in the form of a perfect vaccine and that the road to normality would be long. The top Democrats in the U.S. Congress and White House negotiators on Monday said they had made progress in talks on a new coronavirus relief bill. The U.S. economy, battered by a resurgence in the spread of COVID-19, needs increased government spending to tide over households and businesses and broader use of masks to better control the virus, U.S. central bankers said on Monday. Silver XAG= fell 0.1% to $24.22 per ounce, platinum XPT= rose 0.2% to $918.50 and palladium XPD= gained 0.3% to $2,090.21.

DATA/EVENTS (GMT) 0130 Australia Retail Sales MM

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