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PRECIOUS-Gold draws support from recovery worries after sharp sell-off

Published 08/20/2020, 09:21 AM
Updated 08/20/2020, 09:30 AM
© Reuters.
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Aug 20 (Reuters) - Gold recovered some poise on Thursday
after the U.S. Federal Reserve warned that a recovery from the
pandemic-induced economic slump faced a highly uncertain path.

FUNDAMENTALS
* Spot gold XAU= was up 0.5% at $1,940 per ounce by 0052
GMT, after declining more than 3.5% to a near one-week low on
Wednesday.
* U.S. gold futures GCv1 fell 1.4% to $1,943 per ounce.
* Fed policymakers are considering tweaks to monetary policy
that could result in the U.S. central bank sticking with
aggressive stimulus measures far longer than under its previous
rubric, minutes from their last policy meeting showed.
* More than 22.27 million people have been reported to be
infected by the novel coronavirus globally and 781,162​ have
died, according to a Reuters tally. * Asian equities were set to follow Wall Street's late
session retreat on Thursday. MKTS/GLOB
* The U.S. State Department said it notified Hong Kong on
Wednesday that Washington has suspended or terminated three
bilateral agreements with the semi-autonomous city following
China's imposition of a sweeping national security law.
* Limiting gold's advance, the dollar index .DXY rose 0.2%
after sharp gains in the previous session against its rivals,
making gold expensive for holders of other currencies. USD/
* U.S. Treasury yields rose after the Fed threw a bucket of
cold water on implementing yield curve control as a means of
keeping the cost of borrowing low. US/
* Higher yields increase the opportunity cost of holding
non-yielding assets such as bullion.
* Silver XAG= rose 0.8% to $26.94 per ounce, platinum
XPT= climbed 0.3% to $934.01, and palladium XPD= gained 0.4%
to $2,165.86.

DATA/EVENTS (GMT)
1230 US Initial Jobless Claims Weekly
1230 US Philly Fed Business Indx Aug

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