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Gold rises as weaker dollar, recovery fears lift demand

Published 13/08/2020, 10:54 am
© Reuters.
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Aug 13 (Reuters) - Gold prices rose on Thursday, holding firm above the key $1900 per ounce level, as a weaker U.S. dollar and concerns over the global economic recovery from the mounting COVID-19 cases boosted demand for the safe-haven metal.

FUNDAMENTALS

* Spot gold XAU= was up 0.7% at $1,930.78 per ounce by 0034 GMT. U.S. gold futures GCv1 eased 0.5% to $1,940.

* The dollar index .DXY fell 0.2% against its rivals, making gold less expensive for holders of other currencies. USD/

* Benchmark 10-year Treasury yields dipped from one-month highs, reducing the opportunity cost of holding non-interest bearing gold. US/

* The U.S. economic recovery will be slow until the coronavirus is under control, and Americans will have to manage life with the virus for at least the next several months, three Federal Reserve policymakers said on Wednesday. More than 20.45 million people have been reported to be infected by the coronavirus globally and 743,229​ have died, according to a Reuters tally. White House and top Democrats in Congress may not be able to reach a deal on coronavirus aid, with the stalemate blocking relief to tens of millions of Americans, U.S. Treasury Secretary Steven Mnuchin said. U.S. consumer prices rose more than expected in July, with a measure of underlying inflation increasing by the most in 29-1/2 years amid broad gains in the costs of goods and services. Gold is seen as a hedge against inflation and the fear of currency debasement.

* Asian stocks were set for broad gains on Thursday after Wall Street's S&P 500 index briefly touched record highs. MKTS/GLOB

* Silver XAG= rose 0.6% to $25.71 per ounce, platinum XPT= gained 0.7% to $937.84 and palladium XPD= climbed 1.2%to $2,156.55.

DATA/EVENTS (GMT) 0600 Germany

CPI Final

July 0600 Britain

GDP Prelim

Q2 1230 US

Import Prices MM

July 1230 US

Initial Jobless Claims

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