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Gold ticks up on weaker dollar; Fed decision awaited

Credit: REUTERS/Baz Ratner

Gold prices inched higher on Wednesday as the dollar weakened amid plans to ease major economies out of coronavirus lockdowns, while investors awaited any forward guidance from the U.S. Federal Reserve's policy statement due later in the day.

April 29 (Reuters) - Gold prices inched higher on Wednesday as the dollar weakened amid plans to ease major economies out of coronavirus lockdowns, while investors awaited any forward guidance from the U.S. Federal Reserve's policy statement due later in the day.

FUNDAMENTALS

* Spot gold rose 0.1% to $1,708.53 per ounce by 0126 GMT. U.S. gold futures climbed 0.2% to $1,725.50 per ounce.

* The dollar slipped, having touched a two-week low in the previous session, as the slowing spread of the coronavirus and moves to re-open economies supported the investor mood, ahead of major central bank meetings. [USD/]

* Many countries tiptoed out of lockdowns, while more parts of the United States looked set to restart business after restrictions to curb the spread of virus dented the economy.

* Asian equities made cautious gains in early trade following mixed U.S. corporate earnings. [MKTS/GLOB] [O/R]

* The Fed, which has responded to the current crisis by slashing interest rates, resuming bond-buying and backstopping credit markets, is scheduled to issue a policy statement at 1800 GMT and could begin to clarify how long it intends to leave rates near zero.

* Gold tends to benefit from widespread stimulus measures as it is often seen as a hedge against inflation and currency debasement.

* U.S. consumer confidence tumbled to near a six-year low in April as tough coronavirus restrictions sharply disrupted economic activity and threw millions of Americans out of work.

* The U.S. coronavirus death toll reached a grim milestone on Tuesday, surpassing the number of American lives lost in the Vietnam War, as Florida's governor met with President Donald Trump to discuss easing shutdowns.

* Bank of Nova Scotia (Scotiabank) told staff on Tuesday it would close its metals business, drawing the curtain on one of the most venerable names in precious metals trading, two sources familiar with the matter told Reuters.

* Palladium rose 0.3% to $1,921.81 an ounce and platinum climbed 0.2% to $773.67 per ounce, while silver fell 0.3% to $15.15 per ounce. DATA/EVENTS (GMT) 0900 EU

Consumer Confid. Final

April 1200 Germany

CPI, HICP Prelim YY

April 1230 U.S.

GDP Advance

Q1 1800 U.S. Federal Open Market Committee announces its decision on interest rates followed by a statement 1830 U.S. Federal Reserve Chairman Jerome Powell holds news conference on interest rate policy

(Reporting by Shreyansi Singh in Bengaluru; Editing by Subhranshu Sahu) ((Shreyansi.Singh@thomsonreuters.com; +91 8061823666/3590 (If within U.S. call +1 646 223 8780); Reuters Messaging: Shreyansi.Singh@thomsonreuters.com)) 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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