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PRECIOUS-Gold lingers near one-month low as dollar strength weighs

Published 29/10/2020, 12:33 pm
© Reuters.
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Oct 29 (Reuters) - Gold was little changed on Thursday, trading near a one-month low hit in the previous session, as fears of the economic impact from a fresh wave of the novel coronavirus in Europe kept the dollar around a one-week high it hit on Wednesday.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,877.83 per ounce by 0050 GMT, after falling as much as 2% on Wednesday.

* U.S. gold futures GCv1 were flat at $1,879.60.

* The dollar index .DXY was steady against a basket of six major currencies, pausing after clocking a gain of 0.3% in early trade. USD/

* French President Emmanuel Macron and German Chancellor Angela Merkel ordered their countries back into lockdown on Wednesday, as a massive second wave of infections threatened to overwhelm Europe before the winter. The European Central Bank is expected to resist pressure to unveil fresh stimulus measures on Thursday but it will likely pave the way for action in December. The ECB will announce its policy decision at 1245 GMT. The Bank of Japan is set to maintain its massive stimulus programme on Thursday and vow to take further action if the virus-led economic fallout threatens a return to deflation. There is a high risk the resurgence in coronavirus cases halts the global economic recovery by year-end, according to Reuters polls of around 500 economists. Holdings in SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.67% to 1,258.25 tonnes on Wednesday. Silver XAG= rose 0.1% to $23.43 per ounce, while platinum XPT= dipped 0.1% to $866.96. Palladium XPD= was up 0.7% at $2,254.02.

DATA/EVENTS (GMT)

0855 Germany Unemployment Chg, Rate SA

Oct

1000 EU

Consumer Confid. Final

Oct

1230 US

GDP Advance

Q3

1230 US

Initial Jobless Clm

Weekly'

1245 EU

ECB Refinancing, Deposit Rates Oct

1300 Germany CPI, HICP Prelim YY

Oct

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