June 23, 2020 / 3:46 AM / 22 days ago

PRECIOUS-Gold slips ahead of euro PMI data, second virus wave fears cap losses

    * Euro zone composite flash PMI expected to rise in June
    * Coronavirus infections spike in Latin America
    * Silver slips from more than one-week high

 (Updates prices)
    By Brijesh Patel
    June 23 (Reuters) - Gold eased on Tuesday on expectations of
positive manufacturing data from the euro zone, but concerns
over a second coronavirus wave kept the safe-haven metal near
its highest level in more than a month.
    Spot gold        was down 0.3% at $1,749.80 per ounce by
0701 GMT. On Monday, bullion hit $1,762.84, its highest since
May 18. U.S. gold futures         eased 0.2% to $1,762.30.
    "We're seeing a little bit of profit taking ahead of the PMI
data. Positive data could be a mood shifter and lend more
support to the V-shaped recovery," said Stephen Innes, chief
market strategist at financial services firm AxiCorp.
    Economists expect the euro zone composite flash PMI to rise
to 42.4 in June from 31.9 last month as European economies
gradually reopen. US manufacturing data is also due at 1345 GMT.
    "However, going forward we are going to see more government
and central bank stimulus added to the punch bowl just to see
the market through this second wave, which should be supportive
for gold," Innes said.
    Gold has gained about 15% so far this year, supported mainly
by lower interest rates and widespread stimulus measures by
global central banks to ease the economic blow from the
pandemic, since the non-yielding metal is considered a hedge
against inflation and currency debasement.
    New infections spiked in Latin America, in Brazil in
particular, while New York City, the epicenter of the U.S.
outbreak, eased restrictions on Monday after 100 days of
lockdown.                          
    Asian shares seesawed following confusing statements from
the White House over the U.S.-China trade deal, with President
Donald Trump later clarifying the pact was "fully intact".
                        
    Elsewhere, palladium        fell 1.2% to $1,915.98 per
ounce, platinum        dropped 0.7% to $816.46. Silver       
slipped 0.7% to $17.69, having touched a more than one-week high
on Monday.    

 (Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi
Aich and Krishna Chandra Eluri)
  
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