June 3 (Reuters) - Gold prices dipped on Wednesday as equity
markets rallied on economic optimism and hopes for further
stimulus measures boosted risk-on sentiment.
FUNDAMENTALS
* Spot gold XAU= was down 0.2% at $1,722.93 per ounce, as
of 1252 GMT. U.S. gold futures GCv1 fell 0.3% to $1,729.70.
* Asian equities were set to follow the global equity rally
from Tuesday, on hopes of more government stimulus. MKTS/GLOB
* On Tuesday, stocks in the U.S., Europe and emerging
markets hit their highest levels since early March.
* Traders hope that the European Central Bank will deliver
additional stimulus, by around 500 billion euros, when it meets
on Thursday. * Central banks and governments around the world have
unleashed huge quantities of stimulus to cushion their economies
from the coronavirus pandemic. * Demonstrations against police brutality continued in the
United States, in spite of curfews. Gold is often seen as an
alternative investment during times of political and financial
uncertainty. * Capping some losses, the dollar was down 0.2% and was
trading at an over two-month low, making gold cheaper for
holders of other currencies. USD/
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings, rose 0.1%to 1,129.28
tonnes on Tuesday. GOL/ETF
* Some sort of coronavirus vaccine could be expected to be
available to part of the U.S. population by the end of the year,
a senior U.S. Army vaccine researcher said. * Palladium XPD= rose 1.4% to $1,976.30 per ounce, and
platinum XPT= inched up 0.1% to $839.52, while silver fell
0.6% to $17.98.
DATA/EVENTS (GMT)
0145 China Caixin Services PMI May
0500 India IHS Markit Svcs PMI May
0755 Germany Unemployment Chng, Rate SA May
0800 EU Markit Serv, Comp Final PMIs May
0900 EU Unemployment Rate April
1400 US Factory Orders MM April
1400 US ISM N-Mfg PMI May