May 4, 2020 / 1:33 AM / 3 months ago

CORRECTED-(OFFICIAL)-PRECIOUS-Gold eases on firm dollar; U.S.-China worries limit losses

 (Corrects and gives latest spot gold prices in the second
paragraph after Refinitiv quote page updated; corrects lede and
headline to reflect the change; updates prices for other metals
in the last bullet point)
    May 4 (Reuters) - Gold inched lower on Monday as the U.S.
dollar gained, but prices were trading above last session's near
two-week low as risk sentiment was weakened by rising U.S.-China
tensions over the coronavirus.
       
    FUNDAMENTALS
    * Spot gold        eased 0.1% to $1,697.43 per ounce by 0256
GMT, having touched its lowest since April 21 at $1,668.53 on
Friday. U.S. gold futures        gained 0.3% to $1,705.90 per
ounce.
    * The dollar rose, oil fell and stock markets were poised to
slip as rising U.S.-China tensions over the coronavirus - and
growing unease at the gulf between asset prices and grim
economic reality - turned investors cautious.                  
    * U.S. Secretary of State Mike Pompeo said on Sunday there
was "a significant amount of evidence" that the new coronavirus
emerged from a Chinese laboratory, but did not dispute U.S.
intelligence agencies' conclusion that it was not man-made.
            
    * U.S. President Donald Trump said on Friday raising tariffs
on China is "certainly an option" as he considers ways to
retaliate for the spread of the coronavirus out of Wuhan, China.
            
    * Gilead Science Inc's          antiviral drug remdesivir
was granted emergency use authorization by the U.S. Food and
Drug Administration for COVID-19 on Friday.             
    * After rolling out trillions of dollars in support for the
U.S. economy during the coronavirus pandemic, Federal Reserve
officials have begun warning of potentially lasting scars to the
workforce and productivity if the recovery is not handled well.
            
    * Gold tends to benefit from widespread stimulus measures as
it is often seen as a hedge against inflation and currency
debasement.
    * Consumer prices in Japan's capital city fell for the first
time in three years in April and national factory activity
slumped, data showed.             
    * Australia's Perth Mint said its gold sales shot up in
April to their highest level in at least eight years as concerns
of a shortage prompted investors to stock up to seek cover from
the economic blow from the coronavirus.             
    * Hedge funds and money managers increased their bullish
positions in COMEX gold and silver contracts in the week to
April 28, the U.S. Commodity Futures Trading Commission (CFTC)
said.        
    * Palladium        gained 0.7% to $1,912.52 per ounce.
Platinum        slipped 0.4% to $757.27, while silver       
eased 0.6% to $14.85. 
 
DATA/EVENTS (GMT)
0755   Germany  Markit/BME Mfg PMI   April
0800   EU       Markit Mfg Final PMI April
1400   U.S.     Factory Orders MM    March   

 (Reporting by Shreyansi Singh in Bengaluru; Editing by
Subhranshu Sahu)
  
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