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Gold holds steady on virus fears, U.S.-China tensions

Published 10/08/2020, 11:12 am
Updated 10/08/2020, 11:18 am
© Reuters.
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Aug 10 (Reuters) - Gold prices steadied on Monday after a steep fall in the previous session, as concerns over a worsening COVID-19 pandemic and intensifying U.S.-China tensions underpinned the metal's safe-haven appeal.

FUNDAMENTALS

* Spot gold XAU= was steady at $2,033.40 per ounce by 0045 GMT

* Gold fell more than 1.5% on Friday after hitting a record high of $2,072.50, as the U.S. dollar regained some ground. USD/

* U.S. gold futures GCv1 rose 0.7% to $2,042.90.

* More than 19.73 million people have been reported infected by the novel coronavirus globally and 726,414​ have died, according to a Reuters tally. U.S. President Donald Trump signed executive orders on Saturday partly restoring enhanced unemployment payments to the tens of millions of Americans who lost jobs in the pandemic, as the United States marked a grim milestone of 5 million cases. Investors also kept a wary eye on China's trade relations with the U.S., after Trump signed two executive orders banning two popular Chinese apps. Gold is used as a safe investment during times of political and financial uncertainty.

* Speculators reduced their bullish positions in COMEX gold and silver contracts in the week to Aug. 4, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. CFTC/

* SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.46% to 1,262.12 tonnes on Friday. GOL/ETF

* Physical gold remained out of favour in most Asian hubs last week as a worsening pandemic kept retail buyers away with global benchmark spot prices at historic highs. GOL/AS

* Silver XAG= eased 0.1% to $28.28 per ounce, while platinum XPT= gained 0.9% to $970.12 and palladium XPD= climbed 0.5% to $2,188.13.

DATA/EVENTS (GMT) 0130 China PPI, CPI YY July

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