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Gold eases as risk sentiment improves after Fed policy meeting

Published 30/07/2020, 11:16 am
© Reuters.
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July 30 (Reuters) - Gold prices edged lower on Thursday as investors' appetite for riskier assets improved after the Federal Reserve pledged to support the coronavirus-battered U.S. economy, although a weaker dollar limited losses for the bullion.

FUNDAMENTALS

* Spot gold XAU= fell 0.3% to $1,964.51 per ounce by 0052 GMT after rising 1% in the previous session. USD/

* U.S. gold futures GCv1 rose 0.3% to $1,959.60.

* At the end of its two-day policy meeting on Wednesday, the Fed said it will keep its interest rate target range until it is confident the economy has weathered the COVID-19 pandemic and is on track for maximum employment and price stability goals. The surge in U.S. coronavirus cases is beginning to weigh on economic activity, Fed Chair Jerome Powell said, and promised the U.S. central bank would "do what we can, and for as long as it takes," to limit damage and boost growth. Asian stocks were set to track an upbeat Wall Street session on Thursday. MKTS/GLOB

* Meanwhile, the dollar index .DXY dropped to a near two-year low against its rivals, making gold less expensive for holders of other currencies. USD/

* U.S. President Donald Trump said that his administration and Democrats in Congress were still "far apart" on a new coronavirus relief bill. More than 16.86 million people have been reported to be infected by the novel coronavirus globally and 661,496​ have died, according to a Reuters tally. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.1% to 1,241.96 tonnes on Wednesday. GOL/ETF

* Silver XAG= dropped 0.8% to $24.21 per ounce, while platinum XPT= gained 0.6% to $929.73 and palladium XPD= rose 0.3% to $2,162.64.

DATA/EVENTS (GMT) 0900 EU

Consumer Confid Final

July 0900 EU

Unemployment Rate

June 1230 US

GDP Advance

Q2 1230 US

Initial Jobless Claims

Weekly

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