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PRECIOUS-Gold on track for third weekly gain as virus cases surge

Published 06/26/2020, 09:01 AM
Updated 06/26/2020, 09:10 AM
© Reuters.
XAU/USD
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June 26 (Reuters) - Gold edged higher on Friday and was set
for its third consecutive weekly gain, as coronavirus cases
around the world surged and jittery investors opted for
safe-haven assets.

FUNDAMENTALS
* Spot gold XAU= was up 0.1% at $1,763.48 per ounce as of
0042 GMT.
* Bullion has risen more than 1% so far this week, with
prices scaling a near eight-year high of $1,779.06 per ounce on
Wednesday.
* U.S. gold futures GCv1 rose 0.2% to $1,773.60.
* Coronavirus cases across the United States have soared in
recent days, with Texas pausing its re-opening as COVID-19
infections and hospitalizations surged in the state.
* There has been a rise in infections elsewhere as well,
including in Brazil, Latin America and India. * A spike in virus cases in recent days has dented hopes of
a quick economic recovery and prompted investors seek safe-haven
assets like gold and the U.S. dollar.
* The dollar .DXY held steady against a basket of major
currencies. USD/
* Bank of Japan Governor Haruhiko Kuroda said second-round
effects of the coronavirus pandemic could hurt the Japanese
economy "considerably", signalling the bank's readiness to ramp
up stimulus measures again to cushion any blow from the crisis.
* The U.S. Federal Reserve said it will cap big bank
dividend payments and bar share repurchases until at least the
fourth quarter after finding lenders faced significant capital
losses when tested against an economic slump caused by the
coronavirus pandemic. * Asian stocks were set to gain on Friday, as global
sentiment remained doggedly upbeat despite increased volatility
and rising new coronavirus infections. MKTS/GLOB
* Palladium XPD= gained 0.1% to $1,843.52 per ounce, while
platinum XPT= eased 0.1% to $802.42 and silver XAG= fell
0.8% at $17.74.

DATA/EVENTS (GMT)
1230 US Consumption, Adjusted MM May
1400 US U Mich Sentiment Final June

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