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PRECIOUS-Gold inches higher on U.S.-China tensions, recovery woes
Published at 23/09/2020 at 02:25

Sept 23 (Reuters) - Gold prices edged higher on Wednesday, supported by renewed U.S.-China tensions and concerns over economic recovery, but a robust dollar capped gains.

FUNDAMENTALS

* Spot gold rose 0.2% to $1,902.04 per ounce by 0100 GMT.

* U.S. gold futures eased 0.1% to $1,905.60.

* The dollar index hit an eight-week peak. A firmer dollar makes bullion more expensive for holders of other currencies.

* U.S. President Donald Trump told the United Nations General Assembly on Tuesday that China must be held accountable for having "unleashed" COVID-19 on the world, prompting Beijing to accuse him of "lies" and abusing the U.N. platform to provoke confrontation.

* Top U.S. economic policymakers opened the door on Tuesday to further aid for small businesses hit by the coronavirus-triggered recession, but differed over how broad it might extend and the manner in which it should be delivered.

* Meanwhile, Chicago Fed President Charles Evans said the central bank still needed to discuss its new average inflation target but that it "could start raising rates before we start averaging 2%."

* Low interest rates tend to support gold, which is considered a hedge against inflation and currency depreciation.

* The UK has imposed fresh set of curbs to tackle a second wave of COVID-19, with new restrictions lasting probably six months.

* Holdings in SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.05% to 1,278.23 tonnes on Tuesday.

* Silver fell 0.6% to $24.26 per ounce, platinum

rose 0.3% to $869.64 and palladium slipped 0.8% to $2,203.15.

DATA/EVENTS (GMT)

0715 France Markit Mfg, Serv, Comp Flash PMIs

0730 Germany Markit Mfg, Services, comp Flash PMIs

0800 EU Markit Mfg, Serv, Comp Flash PMIs

0830 UK Flash Mfg, Serv, Comp PMIs

1345 US Markit Serv, Comp Final PMIs

(Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi Aich)

((eileen.soreng@thomsonreuters.com; Within U.S. +1 646 223 8780, Outside U.S. +91 80 6749 6131; Reuters Messaging: eileen.soreng.thomsonreuters.com@reuters.net))