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Gold steady as economic worries over virus spike offset trade optimism

Published 26/08/2020, 11:07 am
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Aug 26 (Reuters) - Gold prices were mostly unchanged on Wednesday, as worries over the global economic outlook from rising COVID-19 cases offset an uptick in risk sentiment driven by signs of progress in U.S.-China trade negotiations.

FUNDAMENTALS

* Spot gold XAU= was flat at $1,927.26 per ounce by 0037 GMT.

* U.S. gold futures GCv1 rose 0.5% to $1,933.60.

* Top U.S. and Chinese trade officials reaffirmed their commitment to a Phase 1 trade deal, which has seen China lagging on its obligations to buy American goods, giving a boost to financial markets on Tuesday.

* Asian stocks were set for a choppy session on Wednesday, following a mixed Wall Street session. MKTS/GLOB

* More than 23.77 million people have been reported to be infected by the novel coronavirus globally and 814,072​ have died, according to a Reuters tally. Underscoring the virus impact, a survey from the Conference Board showed U.S. consumer confidence unexpectedly fell in August to hit a six-year low. Gold is used as a safe investment during times of political and financial uncertainty.

* Market participants now await a speech by U.S. Federal Reserve Chairman Jerome Powell on Thursday, when he is expected to address the U.S. central bank's view on inflation and monetary policy.

* Chinese President Xi Jinping warned that the world's second-biggest economy is facing a period of 'turbulent change' and that rising external markets risk required policymakers to increasingly rely on domestic demand to spur growth. The dollar index .DXY held steady against a basket of major currencies. USD/

* SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.3% to 1,248.87 tonnes on Tuesday from 1,252.38 tonnes on Monday. GOL/ETF

* Silver XAG= was steady at $26.43 per ounce, platinum XPT= rose 0.1% to $928.12, and palladium XPD= fell 0.6% to $2,151.50.

DATA/EVENTS (GMT) 1230 US Durable Goods July

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