May 19 (Reuters) - Gold prices inched up on Tuesday,
supported by strained Sino-U.S. relations and a dismal global
economic outlook, although positive news from an early-stage
trial for a coronavirus vaccine spurred some risk appetite and
capped the metal's gains.
FUNDAMENTALS
* Spot gold XAU= was up 0.2% at $1,735.04 per ounce by
0042 GMT. U.S. gold futures GCv1 gained 0.2% to $1,737.10.
* On Monday, the metal fell back from a more than seven-year
high to settle 0.5% lower, as stocks and oil surged after
drugmaker Moderna MRNA.O said its experimental vaccine showed
promising results in an early-stage trial. * Highlighting Sino-U.S. friction, stock exchange Nasdaq Inc
NDAQ.O is set to unveil new restrictions on initial public
offerings, which will make it more difficult for some Chinese
companies to debut on it, sources said. * U.S. lawmakers and officials are crafting proposals to
push American companies to move operations or key suppliers out
of China that include tax breaks, new rules, and carefully
structured subsidies. * Money markets ramped up expectations that the United
Kingdom could cut interest rates below zero for the first time.
* The global economy will take much longer to recover fully
from the shock caused by the new coronavirus than initially
expected, the head of the International Monetary Fund
said.
* Gold has risen about 14% this year as central banks rolled
out a wave of rate cuts and other stimulus to limit the economic
damage from the pandemic. Lower interest rates reduce the
opportunity cost of holding non-yielding bullion. * Epicentres of the coronavirus outbreak including New York,
Italy and Spain are gradually lifting restrictions that have
kept millions inside. * Palladium XPD= slipped 0.9% to $1,995.76 per ounce,
platinum XPT= fell 0.5% to $814.01, and silver XAG= fell
0.5% to $17.09.
DATA/EVENTS (GMT)
0600 UK ILO Unemployment Rate March
0600 UK Employment Change March
0900 Germany ZEW Economic Sentiment May
1230 US Building Permits: Number April