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PRECIOUS-Gold firms as fears of second pandemic wave boost safe-haven bids

Published 06/25/2020, 09:32 AM
Updated 06/25/2020, 09:40 AM
© Reuters.
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June 25 (Reuters) - Gold prices edged higher on Thursday, as
concerns over rising coronavirus cases dented hopes of a swift
economic recovery, driving investors towards the safe-haven
metal.

FUNDAMENTALS
* Spot gold XAU= was up 0.2% at $1,764.20 per ounce as of
0059 GMT.
* On Wednesday, prices hit a near eight-year high of
$1,779.06. But they ended lower as investors booked profits,
snapping a three day winning streak.
* U.S. gold futures GCv1 eased 0.1% to $1,773.60.
* Three U.S. states reported record increases in new cases
on Wednesday -- Florida, Oklahoma and South Carolina. More than
9.3 million people have been reported to be infected by the
coronavirus globally. * The governors of New York, New Jersey and Connecticut
ordered travellers from nine other U.S. states to quarantine for
14 days on arrival. * The International Monetary Fund (IMF) slashed its 2020
global output forecasts further as it sees deeper and wider
damage from the pandemic than first thought. * Central banks worldwide have adopted aggressive stimulus
measures and kept interest rates low during the crisis.
* Gold, considered a safe investment during times of
political and financial uncertainty, tends to benefit from
widespread stimulus measures as its is widely viewed as a hedge
against inflation and currency debasement.
* Indicative of sentiment, SPDR Gold Trust holdings GLD ,
rose 0.65% to 1,176.85 tonnes. * Asian markets were set to follow a tumble in Wall Street
stocks after surging coronavirus cases and the IMF's subdued
projections shook confidence in a recovery. MKTS/GLOB
* The dollar index .DXY rose 0.1% against a basket of
major currencies. USD/
* Palladium XPD= jumped 0.9% to $1,880.25 per ounce,
platinum XPT= gained 0.2% to $801.43 and silver XAG= rose
0.2% at $17.56.

DATA/EVENTS (GMT)
1230 US Durable Goods May
1230 US GDP Final Q1
1230 US Initial Jobless Claims Weekly

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