July 22 (Reuters) - Gold rose to its highest since September
2011 on Wednesday, propelled by a softer U.S. dollar and
expectation of more stimulus measures to resuscitate
pandemic-hit economies which could stoke inflation.
FUNDAMENTALS
* Spot gold XAU= was up 0.1% at $1,843.09 per ounce by
0034 GMT, after hitting its highest in nearly nine years at
$1,847.30 in early Asian trade.
* U.S. gold futures GCv1 rose 0.1% to $1,845.90.
* The dollar index .DXY held near a more than four-month
low, making gold less expensive for holders of other currencies.
USD/
* Coronavirus cases continue to surge in the United States.
President Donald Trump told reporters at the White House that
the virus would probably get worse before it gets better.
* U.S. Secretary of State Mike Pompeo said the United States
wants to build a global coalition to counter China as he accused
Beijing of exploiting the pandemic to further its own interests.
* White House officials and top congressional Democrats
discussed a next round of coronavirus relief that would include
extended unemployment insurance and more money for schools.
* Japan's factory activity contracted for a 15th straight
month in July, indicating the economic pain from the coronavirus
crisis extended into the third quarter of the year as hopes for
a quick global recovery fade. * Gold is used as a safe investment during times of
political and financial uncertainty.
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.7% to 1,219.75
tonnes on Tuesday. GOL/ETF
* Asia shares were set to open lower on Wednesday after
Trump's comments regarding the country's surge in novel
coronavirus cases outweighed a slight rally on Wall Street.
MKTS/GLOB
* Silver XAG= jumped 5.4% to $22.48 per ounce, palladium
XPD= climbed 0.4% to $2,166.62 and platinum XPT= rose 0.1%
to $882.74.
DATA/EVENTS (GMT)
1400 US Existing Home Sales June