PRECIOUS-Gold climbs to 1-week peak as virus fears boost safety demand

(Updates prices)
* Coronavirus death toll climbs past 900
* Global shares ease on virus uncertainty
* Dollar scales four-month peak

By Brijesh Patel
Feb 10 (Reuters) - The price of gold rose to its highest
level in a week on Monday as the death toll from the coronavirus
outbreak climbed and investors sought safe haven from the
economic impact.
Spot gold XAU= was up 0.4% at $1,575.71 per ounce by 1:57
p.m. EST (1857 GMT). Its session high was the highest since Feb.
4 at $1,576.76. U.S. gold futures GCcv1 settled 0.4% higher at
$1,579.50.
"The coronavirus fears continue to see safe-haven inflows
heading into gold and that has been positive for prices," said
Daniel Ghali, commodity strategist at TD Securities.
"At the same time, it is very crowded trade which means that
rallies tend to be capped as people take advantage to off-load
the metal for profits."
Safe-haven gains for the U.S. dollar capped gold's gains, as
the dollar index .DXY scaled a four-month peak. USD/
The death toll from the epidemic has surpassed that of
Severe Acute Respiratory Syndrome (SARS) from 2002-2003 and the
World Health Organization said the number of cases outside China
could be just "the tip of the iceberg". Investors remained cautious even though Chinese authorities
lifted some work and travel curbs, helping businesses to resume
operations. MKTS/GLOB Since late last month, the world's second-largest economy
has suffered prolonged business closures, lockdowns and travel
restrictions due to the outbreak that hit around the Lunar New
Year holidays, a peak time for travel and business.
Bullion, seen as a safe investment during crisis, is off to
a solid start this year, gaining nearly 4% so far in 2020 after
an annual rise of about 18% in 2019.
Markets are looking forward to Federal Reserve Chair Jerome
Powell's two-day address to the U.S. Congress starting Tuesday,
especially for commentary related to the China-linked virus.
The U.S. Federal Reserve kept benchmark interest rates
unchanged at its January policy meeting, citing moderate
economic growth and a strong jobs market. Lower interest rates decrease the opportunity cost of
holding non-yielding bullion and weigh on the dollar, making
gold cheaper for investors holding other currencies.
On the technical front, "gold now faces the resistance level
of $1,575, and a clear surpass of this level could open space
for further rallies, with a first target of $1,600," ActivTrades
chief analyst Carlo Alberto De Casa said in a note.
Palladium XPD= climbed 1.2% to $2,343.89 an ounce, silver
XAG= gained 0.8% to $17.81, while platinum XPT= dipped 0.3%
to $962.04.