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PRECIOUS-Gold flat as vaccine hopes lift equities; focus shifts to Fed meet

Published 09/14/2020, 09:26 AM
Updated 09/14/2020, 09:30 AM
© Reuters.
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Sept 14 (Reuters) - Gold prices were flat on Monday as
investors maintained a cautious approach ahead of U.S. Federal
Reserve's monetary policy decision this week and as optimism
around a potential COVID-19 vaccine lifted appetite for riskier
assets.

FUNDAMENTALS
* Spot gold XAU= was mostly unchanged at $1,941.11 per
ounce by 0042 GMT.
* U.S. gold futures GCv1 were also steady at $1,948.30.
* Asian shares started higher on Monday as hopes of a
coronavirus vaccine were rekindled after AstraZeneca resumed its
phase-3 trial. MKTS/GLOB * The World Health Organization reported a record one-day
increase in global coronavirus cases on Sunday, with the total
rising by 307,930 in 24 hours. * Euro zone governments must keep spending heavily to aid
the bloc's recovery from its historic pandemic-induced
recession, complementing already super-easy monetary policy,
European Central Bank President Christine Lagarde said on
Sunday. * The dollar index .DXY held steady against its rivals. A
stronger greenback makes gold more expensive for holders of
other currencies. USD/
* All eyes were on the U.S. central bank's two-day policy
meeting scheduled on Sept. 15-16.
* Physical gold dealers in India were forced to offer
discounts for a fourth straight week as bullion remained
unattractive for most retail consumers. GOL/AS
* Speculators increased their net long position in gold by
3,608 contracts to 154,629 in the week ended Sept. 8. CFTC/
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.4% to 1,248.00
tonnes on Friday. GOL/ETF
* Silver XAG= fell 0.3% to $26.68 per ounce, platinum
XPT= gained 0.4% to $928.61, while palladium XPD= was steady
at $2,321.43.

DATA/EVENTS (GMT)
0630 India WPI Inflation YY Aug

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