(Adds comments and updates prices)
* Silver slips from more than 5-month high
* Asian share markets find some stability
* Coronavirus interactive graphic: https://tmsnrt.rs/2GVwIyw
By K. Sathya Narayanan
Feb 25 (Reuters) - Gold prices fell on Tuesday as investors
booked profits after the metal surged to a more than seven-year
high in the previous session and as equities regained some
footing, but a spike in coronavirus cases outside China capped
bullion's losses.
Spot gold XAU= slipped 0.7% to $1,649.70 per ounce by 0847
GMT, having slipped 1.7% at one point earlier in the session.
U.S. gold futures GCcv1 fell 1.5% to $1,652.
On Monday, the metal rose as much as 2.8% to $1,688.66, its
highest since January 2013.
"People are taking profits. Gold has been severely
overbought in the last two weeks because of Covid-19 and
expectations for easy monetary policy," CMC Markets analyst
Margaret Yang Yan said.
"It's a slight reversion of levels from yesterday but I
won't say it's risk-on now, because of the virus. We still have
a lot of opportunities ahead in terms of virus impact and after
traders take in profits, buyers will come back to the market."
Asian stock markets found some stability after a wave of
early selling petered out and Wall Street futures managed a
solid bounce. MKTS/GLOB
The coronavirus death toll climbed to seven in Italy on
Monday, while several Middle East countries were dealing with
their first infections. "There are increasing concerns that the virus is becoming a
global issue now. It would disrupt global supply chains
everywhere and potentially put a cap on day-to-day economic
activity," said Jeffrey Halley, senior market analyst at OANDA.
The rapid spread of the virus beyond China has heightened
fears over its impact on the global economy, driving some bets
that the U.S. Federal Reserve will be pressed to cut rates to
cushion the hit. If central banks react to the global spread by cutting
interest rates or through further monetary easing, gold will
benefit, ING analyst Warren Patterson said.
While a rising dollar, which has also seen strong interest
as a safe haven amid the outbreak, could temper gold's rally, it
is unlikely to "hold it back too much," Patterson added. USD/
On the technical front, gold may retest a support at $1,639
per ounce, according to Reuters analyst Wang Tao.
Among other precious metals, palladium XPD= gained 1.7% to
$2,673.46 per ounce.
Silver XAG= fell 1.3% to $18.39 an ounce, having touched
its highest since early September on Monday, while platinum
XPT= inched up 0.2% to $964.99.
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Gold technicals https://tmsnrt.rs/2SWt2Dy
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