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PRECIOUS-Gold edges higher as dollar halts surge on COVID worries

Published 09/22/2020, 09:30 AM
Updated 09/22/2020, 09:40 AM
© Reuters.
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Sept 22 (Reuters) - Gold prices on Tuesday inched up after
slumping 3.4% in the previous session, as the resurgent dollar
held on to overnight gains, while economic concerns over fresh
rounds of coronavirus-induced lockdowns across Europe also
helped buoy the metal.

FUNDAMENTALS
* Spot gold XAU= rose 0.3% to $1,918.20 per ounce by 1252
GMT. Bullion prices fell to their lowest level since Aug. 12 at
$1,882.70 on Monday as the U.S. dollar soared to an almost
six-week high.
* A firmer dollar makes bullion more expensive for holders
of other currencies.
* U.S. gold futures GCv1 gained 0.6% to $1,921.50 on
Tuesday.
* The dollar index .DXY was down 0.1% against its rivals,
after having strengthened to its highest in more than a month on
Monday.
* The Federal Reserve remains committed to using all the
tools at its disposal to help the U.S. economy recover from the
blow delivered by the coronavirus pandemic, Chair Jerome Powell
said on Monday, ahead of his three-day of testimony to Congress
this week. * A surge in fresh coronavirus infections in countries such
as France, Austria or the Netherlands are worrying, German
Health Minister Jens Spahn said on Monday, adding that Germany
will sooner or later import cases from there. * Gold, which is often used as a safe store of value during
times of political and financial uncertainty, has risen nearly
26% this year.
* Britain will face an exponentially growing death rate from
COVID-19 within weeks unless urgent action is taken to halt a
rapidly spreading second wave of the outbreak, the country's
senior medics said on Monday. * The world's largest 50 investment banks are on track to
double their income from precious metals this year to around
$2.5 billion, most of it from gold, Coalition, a banking
consultancy, told Reuters. * Silver XAG= gained 1.1% to $25 per ounce, platinum
XPT= was up 0.6% to $886.20 and palladium XPD= rose 0.5% to
$2,285.44.

DATA/EVENTS (GMT)
1400 US Existing Home Sales Aug
1400 EU Consumer Confid. Flash Sept

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