PRECIOUS-Gold prices edge up on new virus strain, stimulus-led inflation woes - Reuters

    April 1 (Reuters) - Gold prices edged a tick higher on
Thursday, as expectations of a $2 trillion-plus stimulus plan in
the United States raised concerns of inflation, while reports of
a new vaccine-resistant virus strain also supported bullion's
safe-haven appeal.
    
    FUNDAMENTALS
    * Spot gold        was up 0.2% at $1,710.28 per ounce by
0156 GM, though it was set for its second straight weekly fall. 
    * U.S. gold futures        fell 0.3% to $1,709.80 per ounce.
    * U.S. President Joe Biden on Wednesday called for a
sweeping use of government power to reshape the world's largest
economy and counter China's rise in a $2 trillion-plus proposal
that was met with swift Republican resistance.             
    * Stimulus measures increase the chances of higher inflation
and gold is often considered as a hedge against it.
    * The World Trade Organization slightly raised its growth
forecast for global goods trade this year, but said the outlook
was clouded by risks from the rollout of coronavirus vaccines
and the possible emergence of vaccine-resistant strains.
            
    * However, taking a little shine off the metal, Asian stocks
were set to edge higher early on Thursday after big tech rallied
on Wall Street and as Biden announced a multi-trillion-dollar
infrastructure investment plan.            
    * U.S. government bond yields rose on Wednesday after the
U.S. President unveiled the infrastructure endeavor.      
    * The U.S. dollar will remain strong for at least another
month, according to a Reuters poll of foreign exchange
strategists, who still forecast that the currency will weaken in
the longer term.             
    * Japanese big manufacturers' sentiment improved to
pre-pandemic levels in the first quarter and companies stepped
up capital spending plans.             
    * Silver        dipped 0.1% to $24.36, while platinum       
was down 0.3% at $1,184.14 and palladium        slipped 0.1% to
$2,616.55.
    
 DATA/EVENTS (GMT)DATA/EVENTS (GMT)
0145  China    Caixin Mfg PMI Final        March
0750  France   Markit Mfg PMI              March
0755  Germany  Markit/BME Mfg PMI          March
0800  EU       Markit Mfg Final PMI        March
0830  UK       Markit/CIPS Mfg PMI Final   March
1230  US       Initial Jobless Clm         Weekly
1345  US       Markit Mfg PMI Final        March
1400  US       ISM Manufacturing PMI       March

 (Reporting by Diptendu Lahiri in Bengaluru, Editing by Sherry
Jacob-Phillips)
  

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