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PRECIOUS-Gold subdued on strong dollar; ECB meeting in focus

Published 09/08/2020, 09:10 AM
Updated 09/08/2020, 09:20 AM
© Reuters.
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GC
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Sept 8 (Reuters) - Gold prices eased on Tuesday as the
dollar strengthened, although rising doubts over the economic
recovery from the COVID-19 slump limited losses, with investors
awaiting the outcome of the European Central Bank meeting this
week.

FUNDAMENTALS
* Spot gold XAU= was down 0.2% at $1,925.68 per ounce by
0048 GMT.
* U.S. gold futures GCv1 were steady at $1,934.60.
* The dollar index .DXY rose 0.2% against its rivals,
making gold more expensive for holders of other currencies.
USD/
* More than 27.19 million people have been reported to be
infected by the novel coronavirus globally and 888,326​ have
died, according to a Reuters tally. * Japan's economy shrank more than initially estimated in
the second quarter, while German industrial output rose far less
than expected in July, suggesting Europe's largest economy faces
a slow return to pre-pandemic production levels.
* The U.S. Federal Reserve's landmark shift to a more
tolerant stance on inflation will be a drag on the dollar for
years and will raise hard questions about the role of central
banking, challenging policymakers from Frankfurt to Tokyo.
* Gold tends to benefit from widespread stimulus measures
from central banks because it is widely viewed as a hedge
against inflation and currency debasement.
* U.S. stock futures and Asian shares regained some footing
on Tuesday. MKTS/GLOB
* President Donald Trump on Monday again raised the idea of
separating the U.S. and Chinese economies, suggesting the United
States would not lose money if the world's two biggest economies
no longer did business. * Silver XAG= fell 0.9% to $26.75 per ounce, platinum
XPT= eased 0.2% to $906.17 and palladium XPD= gained 0.3% to
$2,302.74.

DATA/EVENTS (GMT)
0900 EU GDP Revised QQ, YY Q2
1900 US Federal Reserve issues Consumer Credit for July

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