March 16 (Reuters) - Gold prices rose nearly 3% on Monday,
following a steep decline in the previous session, as the dollar
and global equities fell sharply after the U.S. Federal Reserve
made another surprise interest rate cut.
FUNDAMENTALS
* Spot gold XAU= was up 1.4% at $1,550.26 per ounce by
0030 GMT, having risen as much as 2.8% earlier. The metal fell
3% on Friday.
* U.S. gold futures GCv1 rose 2.4% to $1,553.30 per ounce.
* The Fed slashed rates back to near zero, restarted bond
buying and joined other central banks to ensure liquidity in
dollar lending to help put a floor under a rapidly
disintegrating global economy amid the coronavirus pandemic.
* Stock markets and the dollar fell heavily, after emergency
rate cuts in the United States and New Zealand failed to allay
fears about the coronavirus' economic shock. MKTS/GLOB USD/
* New Zealand's central bank slashed interest rates by 75
basis points to a record low following an emergency meeting as
it prepared for a "significant" hit to the economy from the
virus. * Lower interest rates reduce the opportunity cost of
holding non-yielding bullion.
* The benchmark U.S. 10-year Treasury yields fell, resuming
its march towards an all-time low touched last week. US/
* European Union finance ministers plan to agree on Monday
on a coordinated economic response to the epidemic, with the
European Commission forecasting the effects of the virus could
push the EU into a recession. * Manufacturing in Britain weakened sharply in early 2020
even before concerns about the virus crisis escalated, adding
urgency to the need for a trade deal with the European Union, an
industry survey showed. * Physical gold markets in major Asian hubs last week reeled
from the impact of the outbreak and dealers offered deeper
discounts in top consumer China. GOL/AS
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings fell 1.33% to 931.59
tonnes on Friday. GOL/ETF
* Speculators reduced their bullish positions on COMEX gold
and silver contracts in the week to March 10, the U.S. Commodity
Futures Trading Commission (CFTC) said on Friday. CFTC/
* Palladium XPD= fell 3.1% to $1,750.50 per ounce, while
platinum XPT= slipped 0.8% to $755.50.
* Silver XAG= gained 0.7% to $14.78 per ounce.
DATA/EVENTS (GMT)
0200 China Urban Investment (YTD) YY (Feb)
0200 China Industrial Output YY (Feb)
0200 China Retail Sales YY (Feb)
1100 EU Reserve Assets Total (Feb)