Gold prices inched lower on Wednesday as equities rose on upbeat risk sentiment stemming from gradual reopening of many economies, while a firmer dollar also weighed on prices.

 

FUNDAMENTALS

* Spot gold fell 0.1% to $1,704.88 per ounce by 0119 GMT. U.S. gold futures GCv1 rose 0.2% to $1,713.00 per ounce.

* Global stocks and crude prices were set to extend gains in Asia on confidence that government steps to restart economies will bring back growth and demand for oil. 

* Against key rivals, the U.S. dollar gained for a fourth straight session, making gold costlier for investors using other currencies. 

* Italy and the United States were among several countries to tentatively ease lockdowns earlier this week. 

* The U.S. trade deficit increased by the most in more than a year in March as a record drop in exports offset a shrinking import. 

* The U.S. economy could start to recover in the second half of the year after what is shaping up to be the worst recession in decades, but growth is likely to be slow and uneven, several top Federal Reserve policymakers indicated on Tuesday. 

* Germany's highest court on Tuesday gave the European Central Bank three months to justify bond purchases under its flagship stimulus programme or lose the Bundesbank as a participant, raising questions about the scheme and the euro's future. 

* SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.4% to 1,076.39 tonnes on Tuesday from 1,071.71 tonnes on Monday.

* Gold miner Newmont Corp's NEM.N adjusted profit nearly doubled on Tuesday boosted by higher production and a surge in the prices of the precious metal, as investors rushed to the safe-haven asset amid market turmoil caused by the COVID-19 outbreak. 

* Palladium XPD= rose 0.5% to $1,809.41 an ounce, after slipping to its lowest since March 24 at $1,747.31 per ounce in the previous session.

* Platinum XPT= slipped 0.2% to $763.05 per ounce, while silver XAG= fell 0.1% to $15.01 per ounce.

DATA/EVENTS (GMT) 0600 Germany Industrial Orders MM March 0755 Germany Markit Serv, Comp Final PMI April 0800 EU Markit Serv, Comp Final PMIs April

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