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PRECIOUS-Gold prices gain some ground on stimulus hopes

Published 11/10/2020, 10:16 AM
Updated 11/10/2020, 10:20 AM
© Reuters.
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Nov 10 (Reuters) - Gold prices edged higher in early Asian
trade on Tuesday after falling as much as 5.2% in the previous
session, as hopes of more U.S. stimulus measures to weather the
impact of rising COVID-19 cases nudged investors towards the
precious metal as an inflation hedge.

FUNDAMENTALS
* Spot gold XAU= rose 0.5% to $1,871.81 per ounce by 0136
GMT
* It fell to $1,849.93, its lowest level since Sept. 28, on
Monday after U.S. drugmaker Pfizer Inc PFE.N said its
experimental COVID-19 vaccine was more than 90% effective, based
on initial trial results. * "I still think we've got more stimulus coming and the Fed
will keep rates low, while a vaccine is going to provide that
reflationary impulse... That's why the markets are still holding
onto gold," said Stephen Innes, chief global market strategist
at financial services firm Axi.
* U.S. gold futures GCv1 were up 0.8% at $1,869.40.
* U.S. President Donald Trump's campaign on Monday filed a
lawsuit in a Pennsylvania federal court, seeking to block state
officials from certifying President-elect Joe Biden's victory in
the state.
* Dallas Federal Reserve Bank President Robert Kaplan said
on Monday the U.S. economy is rebounding from a deep
contraction, but the resurgence of COVID-19 poses downside
risks. * Cleveland Federal Reserve Bank President Loretta Mester
said the emergency lending programs the Fed set up during the
coronavirus pandemic are still needed. * Holdings in SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, fell 0.83% to 1,249.79 tonnes
on Monday. * Silver XAG= rose 0.1% to $24.10 per ounce. Platinum
XPT= and palladium XPD= were up 0.2% at $868.30 and
$2,483.07, respectively.

DATA/EVENTS (GMT)
0700 UK Claimant Count Unem Chng Oct
0700 UK ILO Unemployment Rate Sep
1000 Germany Zew Economic Sentiment Nov
1000 Germany Zew Current Conditions Nov


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