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PRECIOUS-Firm dollar weighs on gold prices amid virus threats

Published 04/02/2020, 03:04
Updated 04/02/2020, 03:09
© Reuters.  PRECIOUS-Firm dollar weighs on gold prices amid virus threats
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Feb 4 (Reuters) - Gold prices eased on Tuesday as the dollar

held firm after a key U.S. manufacturing survey showed a

surprise rebound, although rising concerns about a widening

coronavirus outbreak in China and its economic fallout provided

some support to the metal.

FUNDAMENTALS

* Spot gold XAU= was down 0.1% to $1,575.27 per ounce by

0156 GMT, after a 0.9% drop in the previous session. U.S. gold

futures GCv1 fell 0.2% to $1,579.50.

* China has agreed to allow U.S. health experts into the

country as part of a World Health Organization effort to help

fight the fast-spreading coronavirus, as the number of cases and

deaths continued to mount. * The death toll from the coronavirus outbreak in China rose

to 425 as of the end of Monday, up by 64 from the previous day,

the country's National Health Commission said. * The dollar .DXY held firm against a basket of rival

currencies after gaining 0.4% in the previous session, its

biggest percentage rise in a month. USD/

* U.S. factory activity rebounded in January after

contracting for five straight months amid a surge in new orders,

a report from the Institute for Supply Management (ISM) showed,

offering hope that a prolonged slump in business investment has

probably bottomed out. * Asian stocks were fragile as cautious investors awaited

further stimulus to boost China's economy due to the onslaught

of coronavirus over the past few days. MKTS/GLOB

* China's central bank flooded the economy with cash while

trimming some key lending rates, but analysts suspect more will

have to be done to offset the economic fallout from the virus.

* With inflation stable and the U.S. economy close to full

employment, the Federal Reserve will be able to keep interest

rates where they are for the time being, Atlanta Federal Reserve

Bank President Raphael Bostic said on Monday. * The Perth Mint's sales of gold coins and minted bars in

January dived 38.8% to 48,299 ounces month-on-month, but were up

54.9% from last year. * Palladium XPD= rose 0.5% to $2,331.19 an ounce, silver

XAG= was flat at $17.66, and platinum XPT= edged higher by

0.1% to $967.01.

DATA/EVENTS (GMT)

0330 Australia RBA Cash Rate Feb

1500 US Factory Orders MM Dec

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