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PRECIOUS-Gold gains as equity rally halts, dollar softens

Published 05/06/2020, 11:27 am
Updated 05/06/2020, 11:30 am
© Reuters.
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June 5 (Reuters) - Gold prices rose on Friday on a weaker U.S. dollar and a pause in the recent rallies in global equity markets, amid signs of lingering economic damage from the coronavirus crisis that had investors moving towards the safe-haven metal.

FUNDAMENTALS

* Spot gold XAU= was up 0.2% at $1,714.78 per ounce, as of 1256 GMT. U.S. gold futures GCv1 were down 0.3% at $1,721.90.

* However, the bullion was set for a third consecutive weekly drop.

* The dollar index .DXY has fallen over 1.5% this week, making gold cheaper for holders of other currencies. USD/

* The rally in Asian equities was set to pause, even as the week's global equity rally lost some steam on Thursday as traders took gains. MKTS/GLOB

* Showing lingering economic damage, U.S. jobless claims fell below 2 million for the first time since mid-March, but remains very high; and U.S. trade deficit surged in April with exports at a 10-year low, data showed on Thursday. Investors now wait for the U.S. nonfarm payrolls data due later in the day, and is likely to show payrolls falling by 8 million after a record 20.537 million plunge in April, according to a Reuters survey of economists. Meanwhile, the European Central Bank approved a larger-than-expected expansion of its stimulus package on Thursday. Japan's household spending suffered the biggest annual drop on record in April, although the fall was not as large as analysts had forecast. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings, dipped 0.1% to 1,132.21 tonnes on Thursday. GOL/ETF

* Palladium XPD= rose 0.7% to $1,946.55 per ounce and platinum XPT= climbed 0.4% to $840.39, while silver XAG= was trading flat at $17.72.

DATA/EVENTS (GMT)

0600 Germany Industrial Orders MM

April 0730 UK

Halifax House Prices MM May 1230 US

Non-Farm Payrolls

May 1230 US

Unemployment Rate

May 1230 US

Average Earnings YY

May

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