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Gold eases on firmer dollar, equities

Credit: REUTERS/HEINZ-PETER BADER

Gold prices edged lower on Tuesday, weighed down by a stronger U.S. dollar and as hopes for coronavirus treatments lifted risk sentiment.

Aug 25 (Reuters) - Gold prices edged lower on Tuesday, weighed down by a stronger U.S. dollar and as hopes for coronavirus treatments lifted risk sentiment.

FUNDAMENTALS

* Spot gold was down 0.2% to $1,929.25 per ounce by 0036 GMT.

* U.S. gold futures eased 0.2% to $1,934.10.

* The dollar index held firm near a more than one-week high hit last week, making gold more expensive for holders of other currencies. [USD/]

* Asia's stock markets opened higher following a Wall Street rally driven by coronavirus vaccine hopes. [MKTS/GLOB]

* The U.S. Food and Drug Administration authorised the use of blood plasma from recovered COVID-19 patients as a treatment option.

* However, the World Health Organization was cautious about endorsing the use of recovered COVID-19 patients' plasma to treat those who are ill, saying evidence that it works remains "low quality."

* Investors now await U.S. Federal Reserve Chairman Jerome Powell's speech at Jackson Hole on Thursday for clarity on the direction of U.S. monetary policy.

* The Fed has rolled out a wave of fiscal and monetary stimulus measures and cut interest rates to near zero to mitigate the economic damage caused by the pandemic, helping gold rise 28% so far this year.

* More than 23.57 million people have been reported to be infected by the novel coronavirus globally and 809,569​ have died, according to a Reuters tally.

* Meanwhile, U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke with Chinese Vice Premier Liu He on Monday, the U.S. Trade Representative's Office said.

* Silver gained 0.3% to $26.62 per ounce, platinum rose 0.8% to $923.10, and palladium climbed 1% to $2,182.59.

DATA/EVENTS (GMT) 0600 Germany GDP Detailed QQ SA, YY NSA Q2 1400 US

Consumer Confidence

Aug 1400 US

New Home Sales-Units

July (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu) ((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net)) Keywords: GLOBAL PRECIOUS/

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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