PRECIOUS-Gold eases ahead of Fed meeting; virus fears persist

(Adds comment, updates prices)
* Coronavirus death toll rises to 106 as of Jan 27
* Fed meeting scheduled to start on Tuesday
* SPDR gold holdings fell 0.1% on Monday

By Asha Sistla
Jan 28 (Reuters) - Gold prices fell on Tuesday as investors
booked profits from the recent rally and the dollar firmed,
although concerns over a new coronavirus kept safe-haven bullion
underpinned.
Spot gold XAU= fell 0.2% to $1,577.85 per ounce by 0820
GMT, after hitting a near three-week peak on Monday. U.S. gold
futures GCv1 were flat at $1,578.10.
Bullion rose for the past four sessions as the spread of the
coronavirus rattled financial markets and prompted authorities
to impose travel restrictions and extend the Lunar New Year
holidays. "Gold has been positive for the last few sessions and is
witnessing profit booking now," said Jigar Trivedi, a
commodities analyst at Anand Rathi Shares and Stock Brokers in
Mumbai adding "uncertainty and global growth concerns due to
coronavirus are still there."
Further weighing on gold, the dollar .DXY hovered close to
a near two-month high hit earlier in the session. USD/
"(Gold) could reach $1,600, but would be more around the
$1,570-$1,590 levels as we need to get more information, there
are a lot of unknown variables around the virus," said John
Sharma, an economist at National Australia Bank (NAB).
Asian shares extended a global selloff on Tuesday as the
death toll from the virus reached 106 in China and some health
experts questioned whether Beijing can contain the virus which
has spread to more than 10 countries, including France and the
United States. MKTS/GLOB
Gold is considered a safe investment during times of
economic and political uncertainty.
Investors will focus on the U.S. Federal Reserve's first
meeting of the year due later in the day, where it is widely
expected to keep interest rates unchanged. FEDWATCH
Lower interest rates reduce the opportunity cost of holding
non-yielding bullion.
Gold looks to consolidate Monday's gains as a number of
traders are off for the Chinese New Year, pinning bullion
towards $1,580, MKS PAMP analysts said in a note.
Holdings of the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust GLD , fell 0.13% to 899.41 tonnes on
Monday. GOL/ETF
In other precious metals, palladium XPD= jumped 2.4% to
$2,323.09 an ounce, having declined as much as 7% in the
previous session.
Silver XAG= fell 0.5% to $17.99, while platinum XPT=
rose 0.3% to $986.50.