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PRECIOUS-Gold gains as dollar weakens, fears of economic damage mount

Published 03/30/2020, 09:17 AM
Updated 03/30/2020, 09:20 AM
© Reuters.
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March 30 (Reuters) - Gold prices edged up on Monday as the
U.S dollar hovered near a two-week low touched in the previous
session, while coronavirus lockdowns tightened across the world
and stoked fears of economic damage, lifting demand for
safe-haven bullion.

FUNDAMENTALS
* Spot gold XAU= was up 0.3% at $1,621.85 per ounce, as of
0029 GMT. U.S. gold futures GCv1 rose 1% to $1,641.80.
* The dollar .DXY was holding close to its lowest since
March 17, touched on Friday, making gold cheaper for investors
holding other currencies. USD/
* Physical gold dealers struggled to meet surging safe-haven
demand last week, especially in Singapore, as the outbreak
choked global supply chains, while massive discounts were
offered in India amidst a lockdown. GOL/AS
* The coronavirus pandemic has already driven the global
economy into recession and countries must respond with "very
massive" spending to avoid a cascade of bankruptcies and
emerging market debt defaults, the head of the International
Monetary Fund warned on Friday. * Asian shares slid on Monday and oil prices took another
tumble as fears mounted the global shutdown for the virus could
last for months. MKTS/GLOB
* The U.S. House of Representatives on Friday approved a
$2.2 trillion aid package - the largest in history - to help
cope with the virus-inflicted economic downturn, while U.S.
consumer sentiment dropped to near a 3-1/2-year low in March.
* U.S. deaths from coronavirus could reach 200,000 with
millions of cases, the government's top infectious diseases
expert warned on Sunday as New York, New Orleans and other major
cities pleaded for more medical supplies. * European Central Bank chief urged wrangling EU leaders to
act more decisively to cushion the economic hit of the pandemic,
three sources familiar with the matter said on Friday.
* The number of deaths in Italy fell for the second
consecutive day on Sunday but the country still looked almost
certain to see an extension of stringent virus containment
measures. * A growing number of imported virus cases in China risked
fanning a second wave of infections when domestic transmissions
had "basically been stopped", a senior health official said on
Sunday. * Holdings in the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust GLD , rose 1.17% to
964.66 tonnes on Friday. GOL/ETF
* Palladium XPD= rose 0.8% to $2,287.98 per ounce,
platinum XPT= slipped 0.5% to $738.05, while silver XAG=
eased 0.8% to $14.36.

DATA/EVENTS (GMT)
0900 EU Consumer Confidence Final (March)
1200 Germany CPI, HICP Prelim YY (March)

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