April 30 (Reuters) - Gold edged lower on Thursday as risk
appetite improved after positive trial results of an
experimental COVID-19 treatment and a jump in oil prices, while
the U.S. Federal Reserve's vow to support the battered economy
underpinned the safe-haven metal.
FUNDAMENTALS
* Spot gold XAU= fell 0.1% to $1,708.85 per ounce by 0141
GMT. U.S. gold futures GCv1 rose 0.7% to $1,725.00 per ounce.
* Asian equity markets were poised to gain, tracking Wall
Street's rally after positive trial results of an experimental
COVID-19 treatment, Fed's pledge to shore up the economy and a
jump in oil prices. MKTS/GLOB O/R
* The dollar nursed losses after the Fed left the door open
to more monetary easing and dampened expectations for a quick
economic recovery from the coronavirus pandemic. USD/
* The Fed left its kept interest rates near zero and
repeated a vow to use its "full range of tools" to shore up the
economy that could feel the weight of consumer fear and social
distancing for a year or more. * The Bank of England faces the nearly impossible task of
putting numbers on the scale of the coronavirus recession next
week, when it must also decide whether to expand its already
huge 645 billion pound bond-buying programme. * Gold tends to benefit from widespread stimulus measures as
it is often seen as a hedge against inflation and currency
debasement.
* The U.S. economy contracted in the first quarter at its
sharpest pace since the Great Recession as stringent measures to
slow the spread of the virus almost shut down the country, while
economists expect an even sharper contraction in GDP in the
second quarter. * Factory activity in China expanded for a second straight
month in April as more businesses resumed work from the
coronavirus-led shutdowns, but a worsening slump in export
orders pointed to a long road to recovery. * Palladium XPD= rose 0.6% to $1,947.94 an ounce and
platinum XPT= gained 0.2% to $776.32 per ounce, while silver
XAG= fell 0.8% to $15.24 per ounce.
DATA/EVENTS AHEAD (GMT)
0755 Germany Unemployment Chg, Rate SA April
0900 EU HICP, HICP-X F&E Flash YY April
0900 EU GDP Flash Prelim QQ, YY Q1
0900 EU Unemployment Rate March
1145 EU ECB Refinancing, Deposit Rates April
1230 U.S. Consumption, Adjusted MM March
1230 U.S. Initial Jobless Claim Weekly
1230 ECB President Christine Lagarde speaks at a press
conference on the outcome of the meeting of the Governing
Council
1330 Press conference following the Governing Council meeting
of the ECB in Frankfurt