PRECIOUS-Gold set for best month in five as virus stifles risk appetite

(Updates prices)
* World share index heads for worst week since August
* WHO opposes restrictions on travel or trade with China
* Gold gains over 4% so far this month, Palladium up 18%

By Brijesh Patel
Jan 31 (Reuters) - Gold prices rose on Friday and were
heading for their best month in five as worries over economic
growth due to the fast-spreading coronavirus boosted appetite
for safe havens.
Supply-squeezed palladium, meanwhile, was on track for its
biggest monthly percentage gain since November 2016.
Spot gold XAU= was up 0.8% at $1,585.66 per ounce by 01:55
p.m. EST (1855 GMT). The metal has gained more than 4% so far
this month.
U.S. gold futures GCv1 settled 0.1% lower at $1,587.90.
"Coronavirus continues to be a strong factor of support as
we are seeing global growth concerns hurting other markets
across the board. As a result, we're seeing safe-haven demand
drive into gold," said David Meger, director of metals trading
at High Ridge Futures.
"Gold is the quintessential safe-haven asset that money
managers are viewing as an alternative for cash."
The World Health Organization declared the epidemic a global
emergency after the virus killed more than 200 people.
"At this point, it's not something the Chinese economy can
shrug off. There will be a hit to growth, the magnitude of which
will be difficult to chisel out in detail for quite a while,"
said Ilya Spivak, a senior currency strategist at DailyFx.
The virus fears gripped financial markets, overshadowing the
latest batch of upbeat corporate earnings. MKTS/GLOB
"Gold is both continuing to find favour as a traditional
safe haven and, at the same time, run into strong resistance on
the run-up to $1,600, which is keeping a lid on gains," OANDA
analyst Craig Erlam said in a note.
On the physical side, however, an extended holiday in top
consumer China due to the outbreak dimmed activity in Asian
bullion hubs. GOL/AS
Auto-catalyst XPD= palladium, which is in short supply,
has risen 18% so far this month, having hit a record high of
$2,582.19 per ounce on Jan. 20. On the day, palladium was down
1.2% at $2,283.19.
"Palladium prices have really been in their own world ...
there is lot of demand for it in a tight supplied environment.
We are seeing what industrial demand can do for prices," High
Ridge Futures' Meger said.
Silver XAG= rose 1.1% to $18.02 an ounce. Platinum XPT=
dipped 1.9% to $959.33 and was on track for its worst week since
early November.