PRECIOUS-Gold steady as equities retreat on fears of virus impact on growth

(Updates prices, adds quote and details)
* Gold headed for biggest weekly drop in three months
* Palladium on track for first weekly gain in three
* Silver set for biggest weekly fall since early Dec
* U.S. non-farm payrolls data due at 1330 GMT

By Asha Sistla
Feb 7 (Reuters) - Gold prices were steady on Friday after
two days of gains as equities lost ground, with the coronavirus
that originated in China showing no signs of slowing down amid
escalating fears of a broader impact on economic growth.
The metal, however, was still on track for its biggest
weekly decline in three months as solid U.S. economic data,
including a drop in unemployment benefits, continued to underpin
the greenback. Investors now await the non-farm payrolls data
due later in the day. Spot gold XAU= was little changed at $1,566.33 per ounce,
as of 0819 GMT, down about 1.5% for the week. U.S. gold futures
GCv1 were unchanged at $1,569.30 per ounce.
"The focus is on whether we are going to get a strong enough
economic shock (from the virus) that would get central banks to
cut rates further," said Ilya Spivak, a senior currency
strategist at DailyFx.
"There is an underlying anxiety and ... clearly markets are
very sensitive, which is why gold doesn't want to fall because
there is anticipation that no central bank is going to be
raising rates in this environment for a long time."
Lower U.S. interest rates put pressure on the dollar and
bond yields, increasing the appeal of gold.
Asian shares slipped on the rising number of fatalities. The
death toll in China reached 636 by the end of Thursday, up 73
from the previous day, the National Health Commission said.
MKTS/GLOB
Data on Thursday showed U.S. unemployment benefits dropped
to a nine-month low and worker productivity rebounded, boosting
the dollar to near 4-month highs. The dollar index .DXY was on
track for its best weekly gain since early November. USD/
"The U.S. market is going good and we are getting some
positive numbers from the economic releases and because of that
we have seen lacklustre trade in gold," said Vandana Bharti,
assistant vice-president of commodity research at SMC Comtrade.
Among other metals, palladium XPD= fell 0.4% to $2,336.78
an ounce. The metal, mainly used in car exhaust systems to cut
back emissions, was still on track to post its first weekly gain
in three.
The new Chinese auto-emissions standards will likely support
the palladium market this year, despite its recent price wobble
following the Wuhan virus outbreak, Capital Economics said in a
note dated Feb. 6.
Silver XAG= fell 0.3% to $17.76 per ounce, set for its
worst week in two months, while platinum XPT= shed 0.2% to
$959.79.