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PRECIOUS-Gold steady as economic worries over virus spike offset trade optimism

Published 08/26/2020, 09:07 AM
Updated 08/26/2020, 09:10 AM
© Reuters.
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Aug 26 (Reuters) - Gold prices were mostly unchanged on
Wednesday, as worries over the global economic outlook from
rising COVID-19 cases offset an uptick in risk sentiment driven
by signs of progress in U.S.-China trade negotiations.

FUNDAMENTALS
* Spot gold XAU= was flat at $1,927.26 per ounce by 0037
GMT.
* U.S. gold futures GCv1 rose 0.5% to $1,933.60.
* Top U.S. and Chinese trade officials reaffirmed their
commitment to a Phase 1 trade deal, which has seen China lagging
on its obligations to buy American goods, giving a boost to
financial markets on Tuesday.
* Asian stocks were set for a choppy session on Wednesday,
following a mixed Wall Street session. MKTS/GLOB
* More than 23.77 million people have been reported to be
infected by the novel coronavirus globally and 814,072​ have
died, according to a Reuters tally. * Underscoring the virus impact, a survey from the
Conference Board showed U.S. consumer confidence unexpectedly
fell in August to hit a six-year low. * Gold is used as a safe investment during times of
political and financial uncertainty.
* Market participants now await a speech by U.S. Federal
Reserve Chairman Jerome Powell on Thursday, when he is expected
to address the U.S. central bank's view on inflation and
monetary policy.
* Chinese President Xi Jinping warned that the world's
second-biggest economy is facing a period of 'turbulent change'
and that rising external markets risk required policymakers to
increasingly rely on domestic demand to spur growth.
* The dollar index .DXY held steady against a basket of
major currencies. USD/
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.3% to 1,248.87
tonnes on Tuesday from 1,252.38 tonnes on Monday. GOL/ETF
* Silver XAG= was steady at $26.43 per ounce, platinum
XPT= rose 0.1% to $928.12, and palladium XPD= fell 0.6% to
$2,151.50.

DATA/EVENTS (GMT)
1230 US Durable Goods July

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