PRECIOUS-Gold steadies on virus fears, stimulus bets; Fed meet eyed

PRECIOUS-Gold steadies on virus fears, stimulus bets; Fed meet eyed

Reuters  | Jul 29, 2020 09:40

PRECIOUS-Gold steadies on virus fears, stimulus bets; Fed meet eyed

July 29 (Reuters) - Gold prices steadied on Wednesday as
worries over rising cases of COVID-19 and expectations of
possible inflation from more stimulus measures underpinned the
metal, while investors awaited the U.S. Federal Reserve's
meeting outcome later in the day.

FUNDAMENTALS
* Spot gold XAU= was little changed at $1,957.84 per ounce
by 0049 GMT. Prices hit an all-time of $1,980.57 on Tuesday
before retreating after investors booked profits and the dollar
regained some ground. USD/
* U.S. gold futures GCv1 rose 0.5% to $1,954.50.
* A Reuters tally showed more than 16.62 million people were
infected with COVID-19, including 655,583 deaths. Cases
continued to surge in the United States, with four states in the
South and West reporting one-day records for virus-related
deaths on Tuesday. * Underscoring the economic impact from the virus, data on
Tuesday showed that U.S. consumer confidence fell more than
expected in July. * Market participants are now looking at the U.S. Fed's
two-day policy meeting, which ends on Wednesday.
* Gold tends to gain when interest rates are low, which
reduces the opportunity cost of holding non-yielding bullion.
Gold is also seen as a hedge against inflation.
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.7% to 1,243.12
tonnes on Tuesday. GOL/ETF
* Meanwhile, Republicans in the White House and the U.S.
Congress were in disarray over their own plan for providing $1
trillion in new coronavirus aid, as negotiations aimed at
reaching a compromise bill with Democrats also sputtered.
* Asian equities pulled backed on Wednesday as an impasse in
U.S. economic stimulus negotiations pushed global stocks lower.
{MKTS/GLOB]
* Silver XAG= dropped 1.1% to $24.31 per ounce, platinum
XPT= fell 0.1% to $947.29 and palladium XPD= slipped 1.1% to
$2,259.52.

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