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Gold flat as virus fears offset gains in equities

Published 2020-07-03, 05:57 a/m
Updated 2020-07-03, 08:24 a/m
© Reuters.

* Positive U.S. jobs, Chinese services data push stocks higher

* Platinum eyes first weekly rise in six

* Silver on track for fourth straight weekly gain

* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser. 

By Nakul Iyer

July 3 (Reuters) - Gold prices were little changed on Friday as worries over an accelerating number of coronavirus cases countered a fillip to risk sentiment from positive U.S. and Chinese economic data.

Spot gold XAU= was mostly unchanged at $1,775.32 per ounce by 1152 GMT. Most U.S. markets are closed on Friday ahead of Independence Day on July 4.

U.S. gold futures GCv1 edged down 0.2% to $1,787.20 per ounce.

"Central bank easing policies and uncertainty surrounding the second wave (of COVID-19) are sustaining gold prices," Bank of China International analyst Xiao Fu said, adding that despite a positive U.S. jobs report, more data was needed to suggest the economy was on a strong footing.

Gold will likely trade in a tight range, but remains well supported above $1,750 an ounce, Xiao Fu said.

Cases of coronavirus continued to increase globally, with more than 10.89 million people infected, while the United States reported a new daily global record number of cases. considerations are also to the fore," said Jeffrey Halley, a senior market analyst at OANDA. "With a holiday in the United States, and the weekend upon us, some haven-directed buying of gold is definitely evident."

Escalating political tensions, more than 75 members of the U.S. Congress sent a letter to President Donald Trump urging him to make a formal determination on whether China's treatment of Muslim Uighurs and other groups constituted an atrocity. of sentiment, holdings of the SPDR Gold Trust GLD , rose 0.8% to 1,191.47 tonnes on Thursday. GOL/ETF

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But stemming gains in bullion, data showing a recovery in China's services sector and a record addition of jobs to the U.S. economy in June, helped world shares inch towards a four-month high. MKTS/GLOB

Palladium XPD= fell 0.3% to $1,896.34 per ounce, while platinum XPT= rose 0.1% to $803.91 per ounce, set for its first weekly gain in six.

Silver XAG= gained 0.4% to $17.97 per ounce, heading for its fourth consecutive weekly gain.

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