S&P 500 falls on pressure from retail stocks, weak jobless claims
(Adds analyst comments and updates prices)
* Commodity currencies slip against the dollar, yen
* 16.8 mln U.S. jobless claims since week ended March 21
* Interactive graphic tracking the global spread: open https://tmsnrt.rs/3aIRuz7
in an external browser
By K. Sathya Narayanan
April 13 (Reuters) - Gold fell on Monday as investors booked
profits after prices hit a one-month high last week, while
worries over a coronavirus-driven steeper global economic
downturn and the U.S. Federal Reserve's stimulus measures
limited bullion's losses.
Spot gold XAU= slipped 0.4% to $1,682.65 per ounce by 0522
GMT, having risen to its highest since March 9 on Friday. U.S.
gold futures GCcv1 fell 1.1% to $1,732.90.
"We're seeing a little bit of reversal of Friday night's
move, which was driven by the Fed's latest policy action. A
little bit of profit-taking is kicking in," IG Markets analyst
Kyle Rodda said, adding that gold faced a stiff technical
resistance around the $1,690 level.
"But broadly speaking, gold is remaining very well
supported."
In a bid to keep the economy afloat amid the outbreak, which
had forced 16.8 million Americans to file for unemployment
benefits since the week ended March 21, the Fed on Thursday
announced a broad, $2.3 trillion stimulus package. "The Fed stimulus is a magnet for gold. Not only does it
improve the opportunity cost for holding gold but at some stage
it will eventually water down the dollar," said Stephen Innes,
chief market strategist at financial services firm AxiCorp.
European Union finance ministers also agreed on
half-a-trillion euros worth of economic support but left open
the question of how to finance recovery in the bloc headed for a
steep recession.
Commodity currencies slipped against safe-haven units such
as the dollar and yen as a record output cut agreed by major oil
producing nations failed to offset broader concerns about global
demand for resources, while world shares fell as investors
braced for more economic damages from the coronavirus pandemic.
USD/ MKTS/GLOB
Meanwhile, major physical bullion hubs saw activity dwindle
last week due to coronavirus-led restrictions, with strained
supply chains cut off from soaring safe-haven demand in some
regions. GOL/AS
Reflecting appetite for bullion, holdings in SPDR Gold Trust
GLD , the world's largest gold-backed exchange-traded fund,
rose 0.6% to 994.19 tonnes on Thursday. GOL/ETF
Palladium XPD= rose 3.4% to $2,245.48 per ounce, while
platinum XPT= slipped 0.9% to $741.60 and silver XAG= fell
0.5% to $15.24.