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PRECIOUS-Gold ticks up on recession fears, firmer dollar caps gains

Published 04/16/2020, 09:18 AM
Updated 04/16/2020, 09:20 AM
© Reuters.
XAU/USD
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April 16 (Reuters) - Gold prices inched higher on Thursday
as fears of a deep global recession due to the novel coronavirus
outbreak were heightened by bleak U.S. economic data, while a
stronger dollar limited the metal's gains.

FUNDAMENTALS
* Spot gold XAU= gained 0.1% to $1,717.20 per ounce by
0036 GMT. U.S. gold futures GCv1 were up 0.3% at $1,745.70.
* A flight to safety bid pushed the dollar higher against
its peers after dire retail and factory data showed the severity
of the collapse in U.S. economic activity caused by the
coronavirus pandemic. USD/
* Asian stocks look set to tumble, as fears that the world
is in its worst recession since the 1930s were heightened by
data showing U.S. retailers suffered a record sales collapse in
March due to the outbreak. MKTS/GLOB
* U.S. retail sales suffered a record drop in March and
output at factories declined by the most since 1946, buttressing
analysts' views that the economy contracted in the first quarter
at its sharpest pace in decades as measures to control the virus
shut down the country. * Japanese business confidence plunged to fresh decade lows
in April as firms reported widespread damage from the pandemic
which is threatening to throw the world economy into recession,
the Reuters Tankan survey showed. * The outbreak is probably peaking in Britain, but it is too
early to start relaxing restrictions, officials said as critics
warned that the country may end up with the worst death rate in
Europe due to government failings. * British retail spending slumped by more than a quarter
during the first two weeks of lockdown measures to slow the
spread of the virus, the British Retail Consortium said, in the
clearest sign so far of COVID-19's economic hit. * The head of the World Health Organization said on
Wednesday he regrets U.S. President Donald Trump's decision to
pull funding for the agency, but that now is the time for the
world unite in its fight against the virus. * Holdings of the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust GLD , rose 0.4% to
1,021.69 tonnes on Wednesday. GOL/ETF
* Palladium XPD= gained 0.3% to $2,185.93 an ounce, while
silver XAG= slipped 0.6% to $15.38 and platinum XPT= fell
1.1% to $770.80.

DATA/EVENTS (GMT)
0130 Australia Unemployment Rate, Employment March
0600 Germany HICP Final YY March
1230 U.S. Housing Starts Number March
1230 U.S. Initial Jobless Claims Weekly
1230 U.S. Philly Fed Business Index April

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