June 12 (Reuters) - Gold prices held steady on Friday as
downward pressure from a stronger dollar countered rising
safe-haven demand supported by gloomy economic projections and
renewed fears over a second wave in COVID-19 infections.
FUNDAMENTALS
* Spot gold XAU= was flat at $1,727.24 per ounce, as of
1256 GMT. U.S. gold futures GCv1 fell 0.4% to $1,733.30.
* On Thursday, spot gold fell 0.5% on a stronger dollar.
* The dollar index .DXY inched up 0.1%, after rising 0.8%
in the previous session, making gold more expensive for holders
of other currencies. USD/
* Asian equities are set to tumble after Wall Street stocks
slid over growing concerns about a resurgence in coronavirus
infections. MKTS/GLOB * The three major U.S. stock indexes fell over 5% on
Thursday, posting their worst day since mid-March.
* A recent spike in cases in about a dozen U.S. states
partially reflects increased testing, but many of those states
are also seeing rising hospitalizations. * U.S. jobless claims declined last week, but continuing
claims are at an astoundingly high 20.9 million. * On Wednesday, Fed officials announced the need to keep the
key interest rate near zero through at least 2022, and that it
would be a "long road" to recovery.
* Large stimulus measures and low interest rates tend to
support gold, which is often considered a hedge against
inflation and currency debasement.
* Gold has rallied about 19% since touching an over
three-month low of $1,450.98 on March 16.
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.5% to 1,135.05
tonnes on Thursday. GOL/ETF
* Palladium XPD= was unchanged at $1,921.22 per ounce,
while silver XAG= was down 0.4% to $17.64, and platinum XPT=
rose 0.2% to $812.37.
DATA/EVENTS (GMT)
0600 UK GDP Estimate MM, YY April
0645 France CPI (EU Norm) Final MM, YY May
1200 India Industrial Output YY April
1400 US U Mich Sentiment Prelim June