July 15 (Reuters) - Gold inched higher on Wednesday, holding
firm above the key $1,800 level, as worries over surging
coronavirus cases and simmering China-U.S. tensions lifted
demand for the safe-haven metal.
FUNDAMENTALS
* Spot gold XAU= was up 0.1% at $1,809.41 per ounce by
0031 GMT. U.S. gold futures GCv1 were steady at $1,813.70.
* Coronavirus cases continue to rise in the United States.
With more than 3.3 million cases, it has one of the highest
rates of cases per capita in the world. * Many U.S. states have temporarily halted the reopening of
their economies in order to curtail the outbreak, which has
infected more than 13 million people worldwide so far.
* Federal Reserve officials warned on Tuesday the U.S.
economy faces a longer recovery from the pandemic, and economic
pain could still worsen as cases mount. * U.S. President Donald Trump signed legislation and an
executive order to hold China "accountable" for the national
security law it imposed on Hong Kong.
* Trump also shut the door on "Phase 2" trade negotiations
with China, saying he does not want to talk to Beijing about
trade because of the coronavirus pandemic. * The Bank of Japan is expected to hold steady on policy
after Wednesday's meeting, but investors will be gauging its
economic projections and any reassurances of additional stimulus
if needed. * Gold tends to benefit from widespread stimulus measures
from central banks because it is widely viewed as a hedge
against inflation and currency debasement.
* Palladium XPD= rose 0.6% to $1,971.49 per ounce,
platinum XPT= gained 0.6% to $831.03 and silver XAG= climbed
0.3% to $19.26.
DATA/EVENTS (GMT)
1315 US Industrial Production MM June
1800 US Federal Reserve issues the Beige Book of
economic condition
-- Japan JP BOJ Rate Decision