May 25 (Reuters) - Gold dipped on Monday as Japanese
equities rose on news about a potential stimulus programme,
although losses were capped by a weaker dollar and worries of
fresh Sino-U.S. tensions over Hong Kong.
FUNDAMENTALS
* Spot gold XAU= fell 0.3% to $1,729.17 per ounce by 1241
GMT. U.S. gold futures GCv1 were down 0.4% to $1,728.40.
* Japan is considering fresh stimulus worth over $929
billion, that mostly consist of financial aid programmes for
companies hit by the coronavirus pandemic, the Nikkei newspaper
said. * Japan's Nikkei .N225 has jumped 1.5% following the
report. MSCI's broadest index of Asia-Pacific shares outside
Japan .MIAPJ0000PUS rose 0.1%. MKTS/GLOB
* The dollar index .DXY was down 0.1%, making
greenback-denominated gold cheaper for investors holding other
currencies.
* China dropped its annual growth target for the first time
on Friday and pledged more government spending, setting a sombre
tone to this year's meeting of parliament. * Highlighting a return of political uncertainty, thousands
rallied on Sunday to protest against Beijing's plan to impose
national security laws on Hong Kong. * China's proposed national security legislation for Hong
Kong could lead to U.S. sanctions and threaten the city's status
as a financial hub, White House National Security Adviser Robert
O'Brien said on Sunday. * SPDR Gold Trust GLD holdings, the world's largest
gold-backed exchange-traded fund, rose 0.4% to 1,116.71 tonnes
on Friday. GOL/ETF
* Palladium XPD= gained 1.3% to $1,970.25 per ounce, while
platinum XPT= was down 1.1% to $830.75 and silver XAG= fell
0.4% to $17.12.
DATA/EVENTS (GMT)
0600 Germany GDP Detailed YY NSA Q1
0800 Germany Ifo Business Climate New May