March 10, 2020 / 3:38 AM / a month ago

PRECIOUS-Gold falls 1% as global stimulus hopes boost risk assets

 (Adds graphic and updates prices)
    * Asian shares bounce, bond yields rise from historic lows
    * Dollar jumps, yen retreats from more than 3-year peak
    * More than 111,600 people infected by coronavirus globally
    * SPDR gold holdings rises to highest since October 2016

    By K. Sathya Narayanan
    March 10 (Reuters) - Gold fell 1% on Tuesday, retreating
from last session's jump above the key $1,700 level, as hopes
for global stimulus measures to cushion the economic impact of
the coronavirus outbreak lifted riskier assets and the dollar.
    Spot gold        declined 1% to $1,663.16 per ounce by 0852
GMT, having touched its highest since December 2012 at $1,702.56
on Monday on concerns over the global spread of the virus. U.S.
gold futures         fell 0.6% to $1,664.80.
    "Markets are getting a little bit edgy. Risk is turning on
due to the fiscal policy measures out of the United States and
Japan, which is negative for gold over the short term," said
Stephen Innes, chief market strategist at AxiCorp.
    U.S. President Donald Trump said he would take "major" steps
to gird the economy against the impact.             
    Japan's economy minister said his government would not
hesitate to take necessary and adequate steps to offset
significant effects on the domestic economy from the global
spread of the virus.             
    A Japanese finance ministry official said it was in contact
with the Trump administration, which is putting together an
economic package.             
    "This is just the beginning of the so-called domino effect
and I would expect the rest of Asian governments to follow in
lock steps with similar packages," Innes said.   
    Asian shares and U.S. dollar bounced, while bond yields rose
from historic lows.                        
    The safe-haven yen        retreated from a more than
three-year high touched on Monday. 
    The significant fiscal response of the United States might
alleviate investor concerns about the economic growth outlook,
which is negative for bullion, said Michael McCarthy, chief 
strategist at CMC Markets.
    The U.S. Federal Reserve delivered emergency interest rates
cut last week to shield the world's largest economy from the
virus impact. The markets expect another cut at the Fed's March
18 policy meeting.                        
    Italy ordered citizens not to move around the country except
 for work and emergencies, while banning all public gatherings.
            
    Total global infections touched 111,600 by Monday, including
80,754 in mainland China.                           
    However, indicating investor interest in bullion, holdings
in the world's largest gold-backed exchange-traded fund, SPDR
Gold Trust      , rose to 30.99 million ounces, its highest
since October 2016.           
    Elsewhere, palladium        rose 0.4% to $2,500.28 per
ounce, having touched a near one-month low in the previous
session. Silver        gained 1% to $17.13, while platinum
       rose 1.5% to $875.80.

    
 (Reporting by K. Sathya Narayanan in Bengaluru; Editing by
Subhranshu Sahu and Aditya Soni)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below