June 9, 2020 / 1:49 AM / a month ago

PRECIOUS-Gold gains as dollar hovers near 3-month low; Fed meet in focus

    June 9 (Reuters) - Gold prices rose on Tuesday as the U.S.
dollar hovered near a three-month low and amid fears of a deep
economic fallout from the coronavirus crisis, while investors
focused on the U.S. Federal Reserve meeting for clues on policy
    * Spot gold        was up 0.4% at $1,700.78 per ounce, as of
0116 GMT. U.S. gold futures        were flat at $1,705.60.
    * The U.S. dollar        hovered near a three-month low,
making gold cheaper for holders of other currencies.       
    * The U.S. central bank eased the terms of its "Main Street"
lending program on Monday, to encourage more businesses and
banks to participate.             
    * Market participants are now looking at the U.S. Fed's
two-day policy meeting, which ends on Wednesday, but have
stopped pricing-in the possibility of negative interest rates
after Friday's jobs report.             
    * Gold tends to gain when interest rates are low, which
reduces the opportunity cost of holding non-yielding bullion.
Gold is also seen as a hedge against inflation.
    * The pandemic will cause global economic output to contract
by 5.2% in 2020, the World Bank said on Monday, further warning
that its latest forecasts would be revised downward if
uncertainty and shutdowns persist.             
    * Further highlighting the economic damage, the private
economics research group that acts as the arbiter for
determining U.S. business cycles said the U.S. economy had
entered recession in February, ending its longest expansion in
    * Asian stocks, however, were set to climb on Tuesday as
confidence in an economic recovery pushed the Nasdaq benchmark
to a record high.            
    * SPDR Gold Trust      , the world's largest gold-backed
exchange-traded fund, said its holdings dipped 0.2% to 1,125.48
tonnes on Monday.          
    * Palladium        fell 0.3% to $2,016.15 per ounce and
silver        declined 1.1% to $17.66, while platinum       
ticked up 0.1% to $833.10.

0900  EU  GDP Revised QQ, YY  Q1

 (Reporting by Harshith Aranya in Bengaluru, Editing by Sherry
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