Constellation Energy and Vistra stock surge after PJM capacity auction results
(Updates prices)
* Gold up more than 2.6% so far this week
* U.S. initial weekly jobless claims data due at 1230 GMT
* Oil prices gain on hopes output will be cut
* Interactive graphic tracking the global spread: open https://tmsnrt.rs/3aIRuz7
in an external browser
By Brijesh Patel
April 9 (Reuters) - Gold prices climbed 1% on Thursday on
safe-haven buying ahead of a long weekend and a crucial meeting
of top oil producers amid generally more positive markets
driven by hopes the coronavirus pandemic is close to peaking.
Spot gold XAU= was up 0.9% at $1,660.38 per ounce by 1205
GMT, having hit a four-week high of $1,671.40 on Tuesday. It has
risen more than 2.6% this week. Most markets will be closed for
Good Friday on April 10.
U.S. gold futures GCv1 rose 1.3% to $1,706.50.
Gold has, on occasion, risen in tandem with equity markets
recently, with wider market selloffs also seeping into precious
metals as investors covered losses elsewhere.
"The yellow metal continues to benefit from this calmer
environment, even as risk appetite improves," OANDA analyst
Craig Erlam said in a note.
"The market is flooded with cash from central banks around
the world which is inflating gold prices at this highly
uncertain time."
Holdings of gold by ETFs rose in March to a record high of
3,185 tonnes, worth $165 billion, the World Gold Council said on
Wednesday. "The virus has driven (central banks) to aggressive monetary
policy stimulus and that's driving investors into gold.
Safe-haven demand has been increasing, we're seeing a lot of
inflows into exchange traded funds," said UBS analyst Giovanni
Staunovo.
European stock markets gained and oil prices rose on
Thursday on expectations OPEC and its allies will agree to cut
output to shore up prices that have tumbled due to a
coronavirus-led demand collapse. O/R .EU
"Whatever decision is made, there will be elevated
volatility in the oil market later, which will affect gold via
inflation expectations," Staunovo said.
Further helping gold's appeal, the dollar .DXY was down
0.1%, en route to a weekly dip. USD/
More than 1.47 million people have been reported infected by
the new coronavirus globally and 87,760 have died. U.S. President Donald Trump said Americans might be getting
to the top of the "curve" and he would like to reopen the
economy with a "big bang" but the death toll first needed to be
heading down.
Investors also awaited U.S. jobless claims data later in the
day, expected to show a jump to a staggering 15 million in the
last three weeks. Elsewhere, palladium XPD= edged 0.1% higher to $2,177.10
per ounce, while platinum XPT= rose 0.1% to $730.39 after
hitting a three-week peak in the last session.
Silver XAG= rose 0.2% to $15.08.