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PRECIOUS-Gold holds steady on softer dollar, investors eye Powell's speech

Published 2020-08-26, 09:11 p/m
© Reuters.
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Aug 27 (Reuters) - Gold prices were mostly unchanged on Thursday after rising more than 1% in the previous session on a weaker U.S. dollar, as investors awaited a speech from Federal Reserve Chairman Jerome Powell due later in the day.

FUNDAMENTALS

* Spot gold XAU= was steady at $1,952.11 per ounce by 0037 GMT.

* U.S. gold futures GCv1 rose 0.3% to $1,959.

* The dollar index .DXY fell 0.2% to a near one-week low against its rivals, making gold less expensive for holders of other currencies.

* Powell is set to speak at a virtual Jackson Hole symposium on Thursday, where he is expected to provide more insight on the U.S. central bank's strategy on inflation and monetary policy.

* Japan wants to avert another state of emergency and needs to consider more stimulus to revive the economy, the government's top spokesman said. Republicans in the U.S. Congress are working on a narrow coronavirus stimulus bill that could be circulated to rank-and-file lawmakers as soon as this week, CNBC reported on Wednesday. Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation and currency debasement.

* SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.3% to 1,252.09 tonnes on Wednesday. GOL/ETF

* Asian stocks will likely climb on Thursday after the S&P 500 and Nasdaq rallied to fresh records on upbeat corporate results. MKTS/GLOB

* The United States on Wednesday blacklisted 24 Chinese companies and targeted individuals it said were part of construction and military actions in the South China Sea. Silver XAG= dropped 0.8% to $27.30 per ounce, platinum XPT= rose 0.6% to $934.29, and palladium XPD= fell 0.6% to $2,184.69.

DATA/EVENTS (GMT) 1230 US

GDP 2nd Estimate

Q2 1230 US

Initial Jobless Claims Weekly

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