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PRECIOUS-Gold eases as economic recovery hopes boost risk appetite

Published 07/09/2020, 09:15 AM
Updated 07/09/2020, 09:20 AM
© Reuters.
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July 9 (Reuters) - Gold prices eased on Thursday from a near
nine-year high scaled in the previous session, as hopes of an
economic recovery lifted risk-on sentiment, although losses were
capped by worries over rising coronavirus cases across the
globe.

FUNDAMENTALS
* Spot gold XAU= fell 0.2% to $1,806.30 by 0046 GMT, after
rising to its highest level since September 2011 at $1,817.71 on
Wednesday.
* U.S. gold futures GCv1 eased 0.1% to $1,818.40 per
ounce.
* Asian equities were expected to rise on hopes of a robust
economic recovery as investors looked ahead to the earnings
season. U.S markets rose on Wednesday, with the Nasdaq ending at
a record high. MKTS/GLOB
* However, Federal Reserve officials on Wednesday suggested
the U.S. recovery may be stalling, raising doubts about its
durability. * Global coronavirus cases clocked over 12 million on
Wednesday, with more than half a million dead. * Gold is often used as a safe store of value during times
of political and financial uncertainty.
* Japan's core machinery orders rose 1.7% in May from the
previous month, versus a 5.4% drop forecast by economists in a
Reuters poll. The core orders are regarded as an indicator of
capital spending in the coming six to nine months. * Britain's finance minister promised an additional $38
billion to head off an unemployment crisis. * SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.27% to 1,182.11
tonnes on Wednesday. GOL/ETF
* Palladium XPD= rose 1.2% to $1,939.55 per ounce and
platinum XPT= climbed 0.3% to $846.50, while silver XAG=
lost 0.7% to $18.64.

DATA/EVENTS (GMT)
0930 China PPI YY, CPI YY June
2030 US Initial Jobless Claims Weekly

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