Gold eases as economic recovery hopes boost risk appetite

Gold prices eased on Thursday from a near nine-year high scaled in the previous session, as hopes of an economic recovery lifted risk-on sentiment, although losses were capped by worries over rising coronavirus cases across the globe.

FUNDAMENTALS

Spot gold fell 0.2% to $1,806.30 by 0046 GMT, after rising to its highest level since September 2011 at $1,817.71 on Wednesday.

U.S. gold futures eased 0.1% to $1,818.40 per ounce.

Asian equities were expected to rise on hopes of a robust economic recovery as investors looked ahead to the earnings season. U.S markets rose on Wednesday, with the Nasdaq ending at a record high.

However, Federal Reserve officials on Wednesday suggested the U.S. recovery may be stalling, raising doubts about its durability.

Global coronavirus cases clocked over 12 million on Wednesday, with more than half a million dead.

Gold is often used as a safe store of value during times of political and financial uncertainty.

Japan’s core machinery orders rose 1.7% in May from the previous month, versus a 5.4% drop forecast by economists in a Reuters poll. The core orders are regarded as an indicator of capital spending in the coming six to nine months.

Britain’s finance minister promised an additional $38 billion to head off an unemployment crisis.

SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.27% to 1,182.11 tonnes on Wednesday.

Palladium rose 1.2% to $1,939.55 per ounce and platinum climbed 0.3% to $846.50, while silver lost 0.7% to $18.64.

DATA/EVENTS (GMT) 0930 China PPI YY, CPI YY June 2030 US Initial Jobless Claims Weekly

(Reporting by Harshith Aranya in Bengaluru; Editing by Subhranshu Sahu)