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PRECIOUS-Gold edges up as recovery hopes ebb on U.S. jobs data, virus concerns

Published 26/11/2020, 12:25 pm
© Reuters.
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Nov 26 (Reuters) - Gold prices ticked up on Thursday as disappointing U.S. jobs data and a resurgence of COVID-19 cases worldwide cast doubts over a swift economic recovery and paused a rally in traditional risk assets.

FUNDAMENTALS

* Spot gold XAU= rose 0.3% to $1,810.06 per ounce by 0052 GMT. U.S. gold futures GCv1 were steady at $1,805.50.

* Asian shares dipped slightly on Thursday as the hot run-up in global markets took a breather. MKTS/GLOB

* The number of Americans filing first-time claims for jobless benefits increased to a seasonally adjusted 778,000 last week amid surging coronavirus cases and business restrictions, U.S. Labor Department data showed on Wednesday. Deaths from COVID-19 in the United States surpassed 2,000 in a single day for the first time since May on Tuesday and hospitalizations reached a record of more than 89,000 on Wednesday. U.S. central bankers agreed asset purchases supported the economy, according to the minutes of the Nov. 4-5 meeting released on Wednesday. Some Federal Open Market Committee participants said they expected the Fed to eventually lengthen the maturity of the bonds purchased. British Prime Minister Boris Johnson said on Wednesday he would not be asking for more time to negotiate a post-Brexit trade deal with the European Union, beyond the current transition period of Dec. 31. While some analysts believe bullion's rally has peaked alongside the recent progress on a COVID-19 vaccine, others say prices may still have some room to rise. Holdings of the SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.4% to 1,194.78 tonnes on Wednesday from 1,199.74 tonnes on Tuesday. Silver XAG= rose 0.2% to $23.35 per ounce. Platinum XPT= gained 0.2% to $965.52 and palladium XPD= was 0.6% higher at $2,342.16.

DATA AHEAD (GMT)

0700 Germany

Dec. GfK Consumer Sentiment

0745 France

Nov. Consumer Confidence

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