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PRECIOUS-Gold edges back from record peak as firm U.S. data dims shine

Published 04/08/2020, 08:09 pm
Updated 04/08/2020, 11:00 pm
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* World shares hit five-month peak

* Gold hovering below Monday's record $1,984.66/oz peak

* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Adds graphic, adds comments, updates prices)

By Eileen Soreng

Aug 4 (Reuters) - Gold was little changed on Tuesday, hovering below the previous session's record peak as fears over the pace of economic recovery amid surging coronavirus cases were offset by upbeat U.S. manufacturing data.

Spot gold XAU= was down 0.1% at $1,975.69 per ounce by 1240 GMT, about $9 shy of the all-time high hit in the previous session. U.S. gold futures GCv1 rose 0.4% to $1,993.40.

Gold is in "wait-and-see mode" for new impulses after the PMI data, which signalled that the economy has found a bottom in the manufacturing sector and an improvement could be seen, said Quantitative Commodity Research analyst Peter Fertig.

World shares hit five-month highs, helped by strong U.S. manufacturing data which showed activity accelerated to its highest in nearly 1-1/2 years in July. MKTS/GLOB activity across the euro zone also expanded for the first time since early 2019 last month. now await progress in talks on a new coronavirus relief bill with Congress, which are set to resume on Tuesday. first reaction to the new measure might be gold price-negative because it will support risk appetite, Commerzbank (DE:CBKG) analyst Carsten Fritsch said.

However, mid-to-long term it will add to already high debt levels and push real interest rates further into negative territory, supporting gold, he added.

"Any price dip is seen as a buying opportunity... The rise towards and above $2,000 is only a matter of time," Fritsch added.

Coronavirus infections continue to surge, with global cases crossing 18.35 million. The World Health Organization warned that the road to normality would be long, with some countries requiring a reset of strategy. casting gloom on economic recovery, friction between the United States and China intensified, with Beijing rebuking President Donald Trump's moves to force China-owned TikTok into a sale of its U.S. operations. XAG= was up 0.4% to $24.35 per ounce, platinum XPT= eased 0.1% to $915.05 and palladium XPD= rose 0.4% to$2,091.49.

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