(Updates prices)
* Palladium, platinum down after weaker car sales by Ford
-analyst
* Palladium falls more than 3%
* China to halve some U.S. tariffs from Feb. 14
* U.S. non-farm payrolls data due on Friday
By Diptendu Lahiri
Feb 6 (Reuters) - Gold rose on Thursday as expectations of
central banks keeping interest rates low and uncertainties
around the economic impact of the coronavirus epidemic fueled
appetite for the safe-haven metal.
Spot gold XAU= gained 0.6% to $1,565.42 per ounce by 1907
GMT, having dropped on Wednesday to its lowest since Jan. 21 at
$1,546.90. U.S. gold futures GCcv1 settled 0.5% up at $1,570.
"Investors are accumulating gold positions at the moment
anticipating more quantitative easing programs and lower rates
from central banks," said Bob Haberkorn, senior market
strategist at RJO Futures.
Lower interest rates reduce the opportunity cost of holding
the non-yielding bullion.
The death toll from the virus in mainland China jumped to
563, with experts stepping up efforts to combat a disease that
has shut down Chinese cities and forced thousands more into
quarantine around the world. The World Health Organization on Wednesday played down
reports of "breakthrough" drugs being discovered to treat
infected people. "The more activities by the central banks, especially in
China, to prop markets up to nullify effects of coronavirus, the
more it will help gold," Haberkorn added.
China said it would halve additional tariffs levied against
U.S. goods and has already signed off on more government
spending, tax relief and subsidies for virus-hit sectors.
Gold's gains came despite a record run in Wall Street, a
stronger dollar and better-than-expected weekly U.S. jobless
claims data. .N USD/
"You can't count out gold" despite the rise in stocks or the
dollar, given a global slowdown, even in China, would keep
"benign interest rates everywhere investors look," George Gero,
managing director at RBC Wealth Management, said in a note.
For future market direction, investors eye the U.S. non-farm
payrolls report due on Friday.
"Technically, the gold bulls have the overall near-term
technical advantage and have worked to stabilize the market late
this week," Kitco Metals senior analyst Jim Wyckoff said in a
note.
Elsewhere, palladium XPD= fell 3.2% to $2,353.66 . The
metal surged to an all-time high of $2,582.19 on Jan. 20.
Both platinum and palladium, used in emissions-controlling
autocatalysts, are seeing some profit-taking due to the weaker
sales reported by major U.S. carmaker Ford Motor Co F.N , RBC's
Gero said in a note. Silver XAG= rose 1.2% to $17.81, while platinum XPT=
slipped 2.4% to $957.83 after touching a one-week high of
$987.60.