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PRECIOUS-Gold eyes best month in four years on virus anxiety, soft dollar

Published 07/31/2020, 08:54 AM
Updated 07/31/2020, 09:00 AM
© Reuters.
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July 31 (Reuters) - Gold prices on Friday were on track for
their best month in more than four years, as a weaker dollar and
worries over the global economic fallout from the mounting
COVID-19 cases drove investors towards the safe-haven metal.

FUNDAMENTALS
* Spot gold XAU= was steady at $1,958.99 per ounce by 0029
GMT. Bullion rose 10% so far this month, its biggest percentage
rise since February 2016. The metal was also on track for its
eighth straight weekly gain.
* U.S. gold futures GCv1 rose 0.5% to $1,953.
* The dollar index .DXY fell 0.3% to a more than two-year
low against its rivals after U.S. President Donald Trump
suggested an election delay. A weaker dollar makes gold cheaper
for holders of others currencies. USD/ * More than 17.15 million people have been reported to be
infected by the novel coronavirus globally and 668,419​ have
died, according to a Reuters tally. * A spike in COVID-19 cases in the United States has dented
hopes for a quick economic recovery, driving inflows into
safe-haven assets such as gold, which has risen more than 28% so
far this year.
* Gold is often used as a safe store of value during times
of political and financial uncertainty.
* Underscoring impact from the virus, U.S. GDP collapsed at
a 32.9% annualized rate during the second quarter, the deepest
decline in output since the government started keeping records
in 1947, the Commerce Department said. * Meanwhile, Japan's industrial output rose 2.7% in June
from the previous month to mark the first advance in five
months, government data showed on Friday. * Silver XAG= slipped 0.7% to $23.39 per ounce, platinum
XPT= eased 0.2% to $901.27 and palladium XPD= dropped 0.8%
to $2,065.33.

DATA/EVENTS (GMT)
0100 China NBS Manufacturing PMI July
0530 France GDP Preliminary QQ Q2
0900 EU GDP Flash Prelim YY, QQ Q2
1230 US Consumption, Adjusted MM June

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