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PRECIOUS-Gold steady as softer dollar, stimulus hopes lend support

Published 01/10/2020, 11:21 am
Updated 01/10/2020, 11:24 am
© Reuters.
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Oct 1 (Reuters) - Gold prices steadied in early trade on Thursday as a softer dollar and progress on another U.S. coronavirus relief package countered pressure from an upbeat U.S. private payrolls data.

FUNDAMENTALS

* Spot gold XAU= was steady at $1,884.67 per ounce by 0058 GMT.

* U.S. gold futures GCv1 were down 0.2% at $1,890.90.

* The dollar index .DXY hovered around a one-week low hit in the previous session. USD/

* U.S. Treasury Secretary Steven Mnuchin on Wednesday said talks with House Speaker Nancy Pelosi made progress on COVID-19 relief legislation, and the House of Representatives postponed a vote on a $2.2 trillion Democratic plan to allow more time for a bipartisan deal to come together. Gold, seen as a hedge against inflation and currency depreciation, has gained 24% so far this year, supported by monetary stimulus from major central banks and governments.

* Latest data from ADP (NASDAQ:ADP) National Employment Report showed U.S. private employers stepped up hiring in September. Another piece of data, however, showed U.S. gross domestic product plunged at a 31.4% annualized rate in the second quarter, the steepest drop since the government started keeping records in 1947. European Central Bank President Christine Lagarde set the scene on Wednesday for a change of strategy that could align the ECB with the U.S. Federal Reserve, possibly including a commitment to let inflation overshoot after it has been low for too long. Silver XAG= rose 0.2% to $23.25 per ounce, platinum XPT= was up 0.4% to $891.95 and palladium XPD= edged 0.2% higher to $2,309.07.

DATA/EVENTS (GMT)

0750 France Markit Mfg PMI

Sept

0755 Germany Markit/BME Mfg PMI

Sept

0800 EU

Markit Mfg Final PMI

Sept

0830 UK

Markit/CIPS Mfg PMI Final

Sept

0900 EU

Unemployment Rate

Aug

1230 US

Consumption Adjusted MM

Aug

1230 US

Initial Jobless Clm

Weekly

1345 US

Markit Mfg PMI Final

Sept

1400 US

ISM Manufacturing PMI

Sept

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