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PRECIOUS-Gold slips from 4-week high as dollar, equities firm on coronavirus slowdown

Published 04/07/2020, 09:43 AM
Updated 04/07/2020, 09:50 AM
© Reuters.
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April 7 (Reuters) - Gold prices eased from a four-week high
on Tuesday, as the U.S. dollar and global equities strengthened
on signs of a slowdown in coronavirus-related deaths.

FUNDAMENTALS
* Spot gold XAU= was down 0.2% at $1,657.67 per ounce, as
of 0110 GMT, after rising to a four-week high earlier in the
session. The metal climbed 2.8% on Monday.
* U.S. gold futures GCv1 rose 1.7% to $1,723.
* The dollar was holding close to a near two-week high
scaled in the previous session. USD/
* Asian markets looked poised on Tuesday to attempt another
day of gains after stocks rallied on signs of easing coronavirus
deaths, as oil prices resumed their decline on doubts about a
potential Saudi-Russian pact to cut output. MKTS/GLOB
* Central banks have been turning to quantitative easing
(QE), or large-scale purchases of government bonds and other
financial assets to pump money into the economy.
* The Federal Reserve on Monday moved to bolster a new
small-business lending program by allowing banks to turn those
loans over to the U.S. central bank for cash, easing concerns
among banks about getting stuck holding the low interest loans.
* A near total closure of U.S. businesses as authorities try
to control the spread of the virus could make U.S. economic data
unreliable in the coming months and harder to get a clearer
picture of the severity of the recession caused by the virus.
* Japanese Prime Minister Shinzo Abe pledged on Monday to
roll out an unprecedented economic stimulus package, equal to
20% of economic output, as his government vowed to take "all
steps" to battle the deepening fallout from the coronavirus.
* The virus is the European Union's biggest ever challenge
and member-states must show greater solidarity so that the bloc
can emerge stronger from the economic crisis unleashed by the
pandemic, German Chancellor Angela Merkel said on Monday.
* Meanwhile, India's gold imports plunged more than 73%
year-on-year in March to their lowest in 6-1/2 years as record
domestic prices and a lockdown to curb the outbreak squeezed
retail demand, a government source said on Monday. * SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.54% to 984.26
tonnes on Monday. GOL/ETF
* Palladium XPD= rose 0.8% to $2,172.53 per ounce, while
platinum XPT= was steady at $735.26.
* Silver XAG= edged up 0.1% to $14.99 an ounce, having
touched a more than three-week high earlier in the session.

DATA/EVENTS (GMT)
0600 Germany Industrial Output MM Feb
0730 UK Halifax House Prices MM March

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