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PRECIOUS-Gold gains on U.S.-China worries; set for a weekly drop

Published 22/05/2020, 02:19
© Reuters.
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May 22 (Reuters) - Gold prices inched up on Friday, after
falling more-than 1% in the previous session, as rising concerns
over U.S.-China relations weighed on risk appetite, although the
metal still looked to be headed for a weekly loss.

FUNDAMENTALS
* Spot gold XAU= climbed 0.1% to $1,727.43 per ounce by
0029 GMT, but was down about 0.8% for the week so far. U.S. gold
futures GCv1 rose 0.3% to $1,727.00.
* Asian shares were set to fall, tracking global equities
that dropped after Beijing's plan to impose a new national
security legislation on Hong Kong drew a warning from U.S.
President Donald Trump. MKTS/GLOB
* Underscoring the novel coronavirus' economic impact,
initial claims for state unemployment benefits in the United
States totalled a seasonally adjusted 2.438 million in the week
ended May 16. * U.S. economic data is likely to become grimmer as the
effects of the pandemic become clearer, and it is difficult to
know what the recovery could look like, New York Federal Reserve
Bank President John Williams said. * China will not to set an economic growth target for 2020
due to the pandemic and global uncertainties, a Bloomberg TV
journalist said in a tweet, citing a Bloomberg News report.
* British consumer confidence in early-May fell to its
joint-lowest level since the global financial crisis, despite
moves by the government to start loosening its lockdown, a
survey showed. * Gold is seen as a safe-haven asset during political and
economic uncertainties.
* Palladium XPD= gained 0.3% to $2,020.11 per ounce, while
platinum XPT= rose 0.4% to $835.31. Both the auto-catalyst
metals were looking to post their best week since end-March.
* Silver XAG= climbed 0.2% to $17.09 and was set to rise
for a third straight week.

DATA/EVENTS (GMT)
0600 UK Retail Sales MM, YY April
0600 UK Retail Sales Ex-Fuel MM April

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