PRECIOUS-Gold rises as coronavirus spreads, U.S. restrictions fuel safe-haven bids

(Updates prices and adds analyst comments)
* Gold on track for sixth straight quarterly rise
* S.Africa's three-week shutdown hits platinum output
* Graphic - Coronavirus unknowns: https://reut.rs/2UHIgvz

By Sumita Layek
March 30 (Reuters) - Gold prices inched up on Monday after
an extension of restrictions in the United States exacerbated
concerns about the economic toll of the coronavirus pandemic,
driving investors to safe-haven assets.
Spot gold XAU= rose 0.1% at $1,618 an ounce by 2:37 p.m.
EDT (1837 GMT). U.S. gold futures GCcv1 settled 0.2% lower to
$1,622 an ounce.
The metal is on track for a 6.8% quarterly rise - its sixth
gain in a row - and set to end the volatile month 2.2% higher.
"Gold is finally starting to shake its recent mantle as a
risk asset and becoming more of a haven asset again, especially
with the extension of national social-distancing controls
through April 30," said Tai Wong, head of base and precious
metals derivatives trading at BMO. "$1,600-$1,610 is solid
technical support and has held resolutely which has also
helped."
U.S. stocks opened higher as President Donald Trump followed
last week's massive $2.2 trillion stimulus package, the largest
on record, by extending his stay-at-home guidelines. .N
Lower interest rates and looser economic policy tend to
benefit gold because they cut the opportunity cost of holding
non-yielding assets.
The pandemic has paralyzed economies worldwide. coronavirus has already driven the global economy into
recession and countries must respond with "very massive"
spending to avoid a cascade of bankruptcies and emerging market
debt defaults, the head of the International Monetary Fund said
on Friday. "The recessionary fallout of the Covid-19 outbreak on the
global economy suggests investors are likely to continue to seek
refuge in gold," analysts at BNP Paribas said in a note. "We
expect demand for gold to remain strong, at least until such
time that economic conditions stabilise and the outlook begins
to improve following the raft of unprecedented stimulus measures
put in place by governments and central banks alike."
The dollar index .DXY rose against rivals, making gold
expensive for holders of other currencies. USD/
Among other metals, palladium XPD= rose 1.7% to $2,308 an
ounce, platinum XPT= dropped 3.4% to $716 an ounce, and silver
XAG= slipped 3.8% to $13.91 an ounce.
The world's largest platinum producers - Anglo American
Platinum, Sibanye Stillwater and Impala Platinum - have declared
force majeure on contracts after a three-week national lockdown
in South Africa forced operations to close.