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PRECIOUS-Gold rises as weak U.S. data, stimulus hopes bolster appeal

Published 18/09/2020, 02:50
©  Reuters
XAU/USD
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XAG/USD
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GC
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SI
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DXY
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Sept 17 (Reuters) - Gold prices rose on Friday as the dollar
slipped, while lacklustre U.S. employment data and vows by major
central banks to roll out further stimulus if required to revive
their coronavirus-hit economies also bolstered the metal's
appeal.

FUNDAMENTALS
* Spot gold XAU= climbed 0.4% to $1,951.13 per ounce by
0125 GMT, having fallen to a one-week low in the previous
session.
* U.S. gold futures GCv1 were up 0.6% at $1,960.80.
* The dollar index .DXY was down 0.1% against its rivals,
making gold more attractive for buyers holding other currencies.
USD/
* The weekly jobless claims report from the U.S. Labor
Department, the most timely data on the economy's health, showed
nearly 30 million people were on unemployment benefits at the
end of August, laying bare the continuing economic and human
devastation from the coronavirus crisis. * The Bank of England said it was looking more closely at
how it might cut interest rates below zero as Britain's economy
faces a triple whammy of rising COVID-19 cases, higher
unemployment and a possible new Brexit shock. * The Bank of Japan kept monetary policy steady and
signalled readiness to ramp up stimulus if job losses from the
pandemic heightened the risk of deflation. * Lower U.S. interest rates tend to weigh on bond yields and
the dollar, bolstering the appeal of non-yielding gold, which is
also seen as a hedge against inflation and currency debasement.
* Swiss exports of gold to the United States all but halted
in August while shipments to China and India rose, customs data
showed, suggesting a big transfer of bullion to New York that
followed the pandemic has run its course. * Silver XAG= fell 0.5% to $26.97 per ounce, platinum
XPT= dipped 0.4% to $936.69 and palladium XPD= slipped 0.8%
to $2,316.58.

DATA/EVENTS (GMT)
0600 UK Retail Sales MM, YY Aug
0600 UK Retail Sales Ex-Fuel MM Aug
1400 US U Mich Sentiment Prelim Sept

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