PRECIOUS-Gold eases after U.S. jobless claims; recession fears cap losses

(Updates prices)
* U.S. weekly jobless claims top 5.2 million in latest week
* India's gold demand could hit 3-decade low in 2020
* Interactive graphic tracking the global spread: open https://tmsnrt.rs/3aIRuz7
in an external browser

By Sumita Layek
April 16 (Reuters) - Gold fell after climbing 1.3% earlier
on Thursday, as safe-haven demand weakened after U.S. jobless
claims rose less than a week ago and hopes grew for an easing of
coronavirus-led curbs.
Spot gold XAU= eased 0.2% at $1,711.29 per ounce by 2:30
p.m. EDT (1830 GMT). U.S. gold futures GCv1 settled down 0.5%
to $1,731.70.
"With the talk of how governments are going to reopen
economies ... gold seems to be focused on moving past the peak
of the pandemic. So from the perspective that there are some
brighter skies ahead we're seeing some pullback," said David
Meger, director of metals trading at High Ridge Futures.
"But the main story continues to be that gold has been
fairly well supported in an environment where we're seeing
unprecedented amount of central bank and fiscal stimulus from
governments around the world," Meger added.
U.S. data showed 5.2 million Americans sought unemployment
benefits last week, down from a slightly revised 6.6 million the
week before, but lifting total filings for claims over the past
month above an astounding 20 million. U.S. President Donald Trump plans to announce new guidelines
to reopen the economy after a month-long shutdown over the
outbreak, despite concerns from health experts, governors and
business leaders about a resurgence in cases without more
testing and protocols in place. Further weighing on gold, the dollar index .DXY hit a
one-week high against rivals. USD/
The pandemic has wreaked havoc in global markets, stalling
life and economic activity across the world, infecting more than
2 million and killing 136,667. "The health, financial and economic uncertainties generated
by the COVID-19 pandemic and its aftermath are likely to
continue to support gold's rally well into 2021," James Steel,
chief precious metals analyst at HSBC said in a note.
"We believe low interest rates, monetary accommodation and
fiscal spending across the world for the foreseeable future will
cement and extend gold's rally, as investors target bullion for
its hard asset characteristics and liquidity."
Physical gold consumption in India, the second largest buyer
of the precious metal, could hit a three-decade low in 2020 as a
nationwide lockdown has closed jewelry stores during key
festivals and the wedding season. Among other precious metals, palladium XPD= fell 1.1% to
$2,156.58 an ounce, and platinum XPT= rose 0.1% to $780.43.
Silver XAG= fell 0.6 to $15.38 per ounce.