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PRECIOUS-Gold slips as ECB gives no stimulus cue

Published 2020-09-11, 07:03 a/m
© Reuters.
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* U.S. Aug unadjusted CPI index comes above expectation

* Gold up 0.6% this week

* Platinum on track for best week since early Aug

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

By Diptendu Lahiri

Sept 11 (Reuters) - Gold prices dipped on Friday after the European Central Bank stopped short of offering any concrete signals on further stimulus, but lingering economic uncertainties kept the metal on track for a weekly rise.

Spot gold XAU= was down 0.4% at $1,945.79 per ounce by 1243 GMT, after hitting its highest level since Sept. 2 at $1,965.94 on Thursday. Gold has gained 0.6% this week.

U.S. gold futures GCcv1 fell 0.7% to $1,950.20.

"The ECB did not address the stronger euro, neither did it come up with any stimulus plans, which will keep inflation in check in the euro zone. That's negative for gold," said Quantitative Commodity Research analyst Peter Fertig.

ECB President Christine Lagarde played down concerns about the euro's strength and disappointed hopes for more stimulus. U.S. Senate blocked a Republican bill that would have provided around $300 billion in new coronavirus aid. is perceived as a hedge against inflation and currency debasement.

Economic indicators suggest a long and difficult recovery from the pandemic, especially in the labour market. Latest data showed U.S. consumer prices increased more than expected in August. COVID-19 vaccine developments and improving economic data present near-term headwinds to gold, low and negative interest rates, a weaker USD, and expectations for further stimulus keep the balance of risks to the upside," Standard Chartered (LON:STAN) said in a note.

Recent data showed Britain's economy grew for a third month in a row in July as some sectors reopened after the coronavirus lockdown, but it remained around 12% smaller than its pre-pandemic level. silver XAG= dropped 0.4% to $26.81 per ounce, while palladium XPD= rose 0.3% to $2,299.95.

Platinum XPT= was up 0.5% to $931.15 and was heading for its best week since the week ending Aug. 7, up 4%.

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