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PRECIOUS-Gold falls 1% as U.S. economic stimulus hopes lift dollar

Published 03/10/2020, 09:47 AM
Updated 03/10/2020, 09:48 AM
© Reuters.  PRECIOUS-Gold falls 1% as U.S. economic stimulus hopes lift dollar
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March 9 (Reuters) - Gold prices fell 1% on Tuesday,
retreating from the previous session's 7-year high as U.S.
President Donald Trump's pledge to take steps to cushion the
economy from the coronavirus eased some worries about the growth
outlook and lifted the dollar.

FUNDAMENTALS
* Spot gold XAU= fell 1% to $1,662.75 per ounce by 0100
GMT, having touched its highest since December 2012 at $1,702.56
in the previous session.
* U.S. gold futures GCv1 declined 0.7% to $1,664.60 per
ounce.
* "U.S. President announced fiscal stimulus measures. That's
weighing on gold prices at the moment," said Michael McCarthy,
chief market strategist at CMC Markets, adding that significant
fiscal response in the United States might alleviate investor
concerns about the economic growth outlook.
* President Trump on Monday said he will be taking "major"
steps to gird the economy against the impact of the coronavirus
outbreak and will discuss a payroll tax cut with congressional
Republicans on Tuesday. * The dollar recovered slightly from heavy losses against
the yen, the euro, and the Swiss franc due to hopes for U.S.
economic stimulus and a bounce in Treasury yields.
USD/
* Asian markets skidded again, but selling was restrained by
hopes for coordinated policy action to quell the panic and
investors seemed to take heart with E-Mini futures for the S&P
500 ESc1 rallying 1.1% after an early slide. MKTS/GLOB
* The total number of infected cases in Mainland China rose
to 80,754 as of Monday, while more than 111,600 people have been
infected globally.
* Movement across Italy will be sharply restricted in a
dramatic new clampdown aimed at halting the spread of the
coronavirus, Prime Minister Giuseppe Conte said on Monday.
* Measures of Australian business and consumer sentiment
took a battering in February as the outbreak threatens to
severely impede growth, raising the risk of the country's first
recession in three decades. * SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.86% to 963.79
tonnes on Monday. GOL/ETF
* Palladium XPD= rose 0.4% to $2,498.94 per ounce, while
platinum XPT= gained 0.9% to $870.02.
* Silver XAG= fell 0.8% to $16.84 per ounce.

DATA/EVENTS (GMT)
0130 China PPI, CPI YY (Feb)
1000 EU GDP Revised QQ, YY (Q4)

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