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PRECIOUS-Gold at 1-1/2-month low as resilient U.S. dollar dents bullion appeal

Published 18/01/2021, 02:08
© Reuters.
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Jan 18 (Reuters) - Gold prices dropped to their lowest in
1-1/2 months on Monday, as a stronger U.S. dollar made bullion
expensive for other currency holders, despite expectations of a
large COVID-19 relief package in the United States.

FUNDAMENTALS
* Spot gold XAU= fell 0.3% to $1,820.46 per ounce by 0048
GMT, having fallen to their lowest since Dec. 2, 2020 at
$1,809.90 earlier in the session. U.S. gold futures GCv1 eased
0.7% to $1,816.80.
* The U.S. dollar .DXY strengthened to its highest in four
weeks against rival currencies. USD/
* U.S. President-elect Joe Biden said on Friday he wants 100
million COVID-19 vaccine shots during his first 100 days in
office, a day after unveiling a $1.9 trillion stimulus package
proposal to jump-start the economy. * U.S. retail sales fell for a third straight month in
December, while U.S. producer prices rose moderately, suggesting
that an anticipated pick-up in inflation in the coming months
will probably not be worrisome. * China's economic recovery likely accelerated in the fourth
quarter, driven by stronger demand at home and abroad and policy
stimulus, which is expected to provide a solid boost into
2021. * Holdings of the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust GLD rose 1.4% to
1,177.63 tonnes on Friday. GOL/ETF
* Speculators reduced their bullish positions in COMEX gold
and silver contracts in the week ended Jan. 12, data showed on
Friday.
* Physical gold in top consumer China was sold at a small
premium for the first time since early 2020 last week, as demand
picked up ahead of the Chinese new year. GOL/AS
* Silver XAG= fell 0.6% to $24.57 an ounce. Platinum
XPT= rose 0.4% to $1,078.19, while palladium XPD= shed 0.2%
to $2,377.49.

DATA/EVENTS (GMT)
0200 China Urban Investment (YTD) YY Dec
0200 China Industrial Output YY Dec
0200 China Retail Sales YY Dec
0200 China GDP YY Q4

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