March 18 (Reuters) - Gold prices rose on Wednesday as the
U.S. Federal Reserve's measures to boost liquidity in the market
eased some concerns over disruptions to the global economy and a
potential cash crunch due to the coronavirus outbreak.
FUNDAMENTALS
* Spot gold XAU= rose 0.7% to $1,538.63 per ounce by 0038
GMT. U.S. gold futures GCv1 gained 0.8% to $1,538 an ounce.
* The Fed said on Tuesday it would reinstate a funding
facility used during the 2008 financial crisis to get credit
directly to businesses and households as fears over a liquidity
crunch due to the virus have grown in recent days. * The Fed's measures supported the benchmark U.S. 10-year
Treasury yield, which is holding close to a two-week high scaled
on Tuesday. US/
* The Trump administration pursued a $1 trillion stimulus
package that could deliver $1,000 checks to Americans within two
weeks to buttress an economy hit by the virus. * Britain launched a new lending scheme to provide
short-term bridging finance for large businesses hurt by the
spread of coronavirus, which will be run and funded by the Bank
of England. * Japanese Prime Minister will form a panel of key economic
ministers and Bank of Japan Governor to discuss measures to prop
up an economy hit by the fallout from the epidemic, a government
official with direct knowledge of the matter said. * In China the sharp drop in new virus infected cases has
encouraged consumers to venture back into malls and restaurants
- for the most part quite gingerly but occasionally in throngs.
* On Tuesday, worldwide coronavirus cases crossed 187,000,
while the death toll was over 7,400; there have now been more
cases and deaths outside mainland China than inside.
* The mood among German investors slumped in March to levels
last seen at the beginning of the world financial crisis in 2008
due to alarm at the impact of the outbreak on Europe's largest
economy, a survey showed. * U.S. retail sales fell by the most in over a year in
February and the epidemic is expected to depress sales in the
months ahead, which could strengthen economists' expectations of
a consumer-led recession by the second quarter. * Palladium XPD= fell 0.9% to $1,629 per ounce, while
platinum XPT= gained 0.8% to $666.38. Silver XAG= rose 1.7%
to $12.81 after eight straight sessions of falls.
DATA/EVENTS (GMT)
1000 EU HICP Final MM, YY (Feb)
1230 U.S. Housing Starts Number (Feb)