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PRECIOUS-Gold falls 1% as U.S. economic stimulus hopes lift dollar

Published 10/03/2020, 12:47 pm
Updated 10/03/2020, 12:49 pm
PRECIOUS-Gold falls 1% as U.S. economic stimulus hopes lift dollar
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March 9 (Reuters) - Gold prices fell 1% on Tuesday, retreating from the previous session's 7-year high as U.S. President Donald Trump's pledge to take steps to cushion the economy from the coronavirus eased some worries about the growth outlook and lifted the dollar.

FUNDAMENTALS

* Spot gold XAU= fell 1% to $1,662.75 per ounce by 0100 GMT, having touched its highest since December 2012 at $1,702.56 in the previous session.

* U.S. gold futures GCv1 declined 0.7% to $1,664.60 per ounce.

* "U.S. President announced fiscal stimulus measures. That's weighing on gold prices at the moment," said Michael McCarthy, chief market strategist at CMC Markets, adding that significant fiscal response in the United States might alleviate investor concerns about the economic growth outlook.

* President Trump on Monday said he will be taking "major" steps to gird the economy against the impact of the coronavirus outbreak and will discuss a payroll tax cut with congressional Republicans on Tuesday. The dollar recovered slightly from heavy losses against the yen, the euro, and the Swiss franc due to hopes for U.S. economic stimulus and a bounce in Treasury yields. USD/

* Asian markets skidded again, but selling was restrained by hopes for coordinated policy action to quell the panic and investors seemed to take heart with E-Mini futures for the S&P 500 ESc1 rallying 1.1% after an early slide. MKTS/GLOB

* The total number of infected cases in Mainland China rose to 80,754 as of Monday, while more than 111,600 people have been infected globally. Movement across Italy will be sharply restricted in a dramatic new clampdown aimed at halting the spread of the coronavirus, Prime Minister Giuseppe Conte said on Monday. Measures of Australian business and consumer sentiment took a battering in February as the outbreak threatens to severely impede growth, raising the risk of the country's first recession in three decades. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.86% to 963.79 tonnes on Monday. GOL/ETF

* Palladium XPD= rose 0.4% to $2,498.94 per ounce, while platinum XPT= gained 0.9% to $870.02.

* Silver XAG= fell 0.8% to $16.84 per ounce.

DATA/EVENTS (GMT)

0130 China PPI, CPI YY (Feb) 1000 EU

GDP Revised QQ, YY (Q4)

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