June 3, 2020 / 1:27 AM / a month ago

PRECIOUS-Gold eases as equity rally boosts risk appetite

    June 3 (Reuters) - Gold prices dipped on Wednesday as equity
markets rallied on economic optimism and hopes for further
stimulus measures boosted risk-on sentiment. 
        
    FUNDAMENTALS
    * Spot gold        was down 0.2% at $1,722.93 per ounce, as
of 1252 GMT. U.S. gold futures        fell 0.3% to $1,729.70.
    * Asian equities were set to follow the global equity rally
from Tuesday, on hopes of more government stimulus.            
    * On Tuesday, stocks in the U.S., Europe and emerging
markets hit their highest levels since early March. 
    * Traders hope that the European Central Bank will deliver
additional stimulus, by around 500 billion euros, when it meets
on Thursday.             
    * Central banks and governments around the world have
unleashed huge quantities of stimulus to cushion their economies
from the coronavirus pandemic.             
    * Demonstrations against police brutality continued in the
United States, in spite of curfews. Gold is often seen as an
alternative investment during times of political and financial
uncertainty.             
    * Capping some losses, the dollar was down 0.2% and was
trading at an over two-month low, making gold cheaper for
holders of other currencies.           
    * SPDR Gold Trust      , the world's largest gold-backed
exchange-traded fund, said its holdings,  rose 0.1%to 1,129.28
tonnes on Tuesday.          
    * Some sort of coronavirus vaccine could be expected to be
available to part of the U.S. population by the end of the year,
a senior U.S. Army vaccine researcher said.             
    * Palladium        rose 1.4% to $1,976.30 per ounce, and
platinum        inched up 0.1% to $839.52, while silver fell
0.6% to $17.98.

    DATA/EVENTS (GMT)

0145  China      Caixin Services PMI           May
0500  India      IHS Markit Svcs PMI           May
0755  Germany    Unemployment Chng, Rate SA    May
0800  EU         Markit Serv, Comp Final PMIs  May
0900  EU         Unemployment Rate             April
1400  US         Factory Orders MM             April
1400  US         ISM N-Mfg PMI                 May

 (Reporting by Harshith Aranya in Bengaluru; Editing by Rashmi
Aich)
  
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