June 17 (Reuters) - Gold prices held steady on Wednesday, as
fears of a second wave of coronavirus infections offset optimism
around a potential COVID-19 drug and a stronger U.S. dollar.
FUNDAMENTALS
* Spot gold XAU= was flat at $1,727.22 per ounce, as of
0054 GMT.
* U.S. gold futures GCv1 were steady at $1,737 per ounce.
* Beijing reported new COVID-19 cases for the sixth day in
the worst outbreak in the Chinese capital since early February,
while new coronavirus infections hit record highs in six U.S.
states on Tuesday. * Market participants are also keeping a close eye on
escalating tensions globally, as Indian and Chinese troops
clashed at their disputed border, while North Korea blew up an
inter-Korean liaison office set up in a border town.
* Gold is used as a safe investment during times of
political and financial uncertainty.
* The prospects of fresh support from the Federal Reserve
and Bank of Japan also supported the safe-haven metal.
* Limiting gold's appeal, however, the dollar .DXY rose
0.1% against its rivals after a record increase in U.S. retail
sales in May. USD/
* U.S. retail sales jumped a record 17.7% in May, blowing
past the 8% increase analysts expected and supporting views the
U.S. recession might be drawing to an end. * Better than expected U.S. economic data and an upbeat
trial results for a COVID-19 treatment lifted investors appetite
for riskier assets. MKTS/GLOB
* A cheap and widely used steroid called dexamethasone has
become the first drug shown to be able to save the lives of
COVID-19 patients in what scientists said is a "major
breakthrough" in the coronavirus pandemic.
* Palladium XPD= fell 0.5% to $1,922.13 per ounce, while
silver XAG= gained 0.4% to $17.46, and platinum XPT= was
mostly unchanged at $820.04.
DATA/EVENTS (GMT)
0600 UK CPI YY
0900 EU HICP Final MM, YY
1230 US Housing Starts Number