PRECIOUS-Gold gains as virus fuels economic worry

(Updates prices, adds comment)
* Fed not satisfied with inflation running below 2%
* WHO to decide whether virus constitutes global emergency
* Norilsk Nickel to deliver 3 T of palladium to market
* SPDR Gold holdings rise 0.5% on Wednesday

By Sumita Layek
Jan 30 (Reuters) - Gold prices rose on Thursday as worries
about the economic impact from a fast-spreading coronavirus in
China improved the metal's safe-haven appeal.
Spot gold XAU= rose 0.3% to $1,581.75 per ounce by 0744
GMT and U.S. gold futures GCv1 gained 0.7% to $1,580.90.
"The uncertainties surrounding the spread of the virus and
its economic impact are supporting gold," said Hareesh V, head
of commodity research at Geojit Financial Services.
"Chinese (New Year) holidays have been extended, many
companies have shut down ... factory output etc. will be
impacted, so people trust gold as a safe haven."
Gold gained 0.7% on Wednesday after the U.S. Federal Reserve
held interest rates steady and Chair Jerome Powell said the
central bank was not satisfied with inflation running below 2%.
"The Fed acknowledged the new risk (coronavirus) that has
come to the market scenario, and said it didn't see 2% as a
ceiling for inflation. In other words, it could continue cutting
rates even if inflation remained higher," said Michael McCarthy,
chief market strategist at CMC Markets.
Powell acknowledged the risks of any short-term slowdown in
China due to the virus, which has claimed 170 lives so far. The
World Health Organisation (WHO) will reconvene on Thursday to
decide whether the epidemic constitutes a global emergency.
Among equities, Asian stocks slipped on worries about the
fast-spreading virus. US/ MKTS/GLOB
Limiting gold's advance, the dollar .DXY held close to a
near two-month high hit on Wednesday, against a basket of
currencies. USD/
"At a minimum, gold will remain bid until the Wuhan flu
becomes a transitory event. Still, with an array of risks
simmering on the back burner, gold should remain in demand for
the foreseeable future," Stephen Innes, chief market strategist
at AxiCorp, said in a note.
Holdings of the world's largest gold-backed exchange-traded
fund, SPDR Gold Trust GLD , rose 0.5% to 903.50 tonnes on
Wednesday. GOL/ETF
Palladium XPD= lost 1.4% to $2,257.14 an ounce. The
autocatalyst metal has gained 16% so far this month, having hit
a record high of $2,582.18 on Jan. 20, on supply worries.
Russia's Norilsk Nickel said on Wednesday its Global
Palladium Fund would deliver three tonnes of palladium ingots to
the market from its current stock to provide a short-term relief
to tight supplies. Silver XAG= gained 0.9% to $17.69, while platinum XPT=
fell 1.2% to $962.46.