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Gold inches higher on U.S.-China tensions, recovery woes

Published 23/09/2020, 11:25 am
© Reuters.
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Sept 23 (Reuters) - Gold prices edged higher on Wednesday, supported by renewed U.S.-China tensions and concerns over economic recovery, but a robust dollar capped gains.

FUNDAMENTALS

* Spot gold XAU= rose 0.2% to $1,902.04 per ounce by 0100 GMT.

* U.S. gold futures GCv1 eased 0.1% to $1,905.60.

* The dollar index .DXY hit an eight-week peak. A firmer dollar makes bullion more expensive for holders of other currencies. USD/

* U.S. President Donald Trump told the United Nations General Assembly on Tuesday that China must be held accountable for having "unleashed" COVID-19 on the world, prompting Beijing to accuse him of "lies" and abusing the U.N. platform to provoke confrontation. Top U.S. economic policymakers opened the door on Tuesday to further aid for small businesses hit by the coronavirus-triggered recession, but differed over how broad it might extend and the manner in which it should be delivered. Meanwhile, Chicago Fed President Charles Evans said the central bank still needed to discuss its new average inflation target but that it "could start raising rates before we start averaging 2%." Low interest rates tend to support gold, which is considered a hedge against inflation and currency depreciation.

* The UK has imposed fresh set of curbs to tackle a second wave of COVID-19, with new restrictions lasting probably six months. Holdings in SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.05% to 1,278.23 tonnes on Tuesday. Silver XAG= fell 0.6% to $24.26 per ounce, platinum XPT= rose 0.3% to $869.64 and palladium XPD= slipped 0.8% to $2,203.15.

DATA/EVENTS (GMT)

0715 France

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0730 Germany

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0800 EU

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0830 UK

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1345 US

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