Feb 20 (Reuters) - Gold prices on Thursday eased from their highest in nearly seven years in the previous session, as safe-haven demand took a hit after a dramatic drop in new coronavirus cases and on expectations that China will continue to shore up its economy.
FUNDAMENTALS
* Spot gold XAU= was down 0.2% at $1,607.49 per ounce, as of 0100 GMT. In the previous session, bullion prices surged to their highest since March 25, 2013 at $1,612.62.
* U.S. gold futures GCv1 remained unchanged at $1,612.40.
* China reported on Thursday a drop in new cases in the province at the heart of the coronavirus outbreak. Cases in Hubei province were 349 on Wednesday from 1,693 a day earlier and the lowest since Jan. 25, although it was accompanied by a change in methodology. Asian share markets edged higher as worries over the virus outbreak alleviated. MKTS/GLOB
* China is widely expected to cut its benchmark lending rate on Thursday, adding to a slew of fiscal and monetary measures in recent weeks, aimed at cushioning the virus impact on the economy. U.S. Federal Reserve policymakers were cautiously optimistic about their ability to hold interest rates steady this year, minutes of the central bank's last policy meeting showed, even as they acknowledged new risks caused by the outbreak. A meeting of U.S. government officials to discuss further curbs on exports to Huawei and China is still on for Thursday, despite a pushback from President Donald Trump against stricter limits on shipments of U.S. products overseas. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD , rose 0.2% to 931.60 tonnes on Wednesday. GOL/ETF
* Palladium XPD= advanced 0.6% to $2,728.50 an ounce. In the previous session, the auto-catalyst metal touched a record high of $2,841.54.
* Silver XAG= was down 0.4% at $18.33, but hovered near a more than one-month high hit in the last session, while platinum XPT= fell 0.5% to $1,000.71. DATA/EVENTS (GMT) 0745 France
CPI (EU Norm) Final MM, YY Jan 0930 UK
Retail Sales MM, YY
Jan 0930 UK
Retail Sales Ex Fuel MM
Jan 1330 US
Initial Jobless Claims
Weekly 1330 US
Philly Fed Business Indx