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PRECIOUS-Gold edges up as Fed flags coronavirus concerns

Published 30/01/2020, 12:46 pm
© Reuters.  PRECIOUS-Gold edges up as Fed flags coronavirus concerns
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Jan 30 (Reuters) - Gold prices inched up on Thursday after the U.S. Federal Reserve said the new coronavirus outbreak could hurt China's economy in the short term.

FUNDAMENTALS

* Spot gold XAU= rose 0.1% to $1,578.05 per ounce by 0058 GMT, having gained 0.7% in the previous session. U.S. gold futures GCv1 climbed 0.5% to $1,577.70.

* The Fed held rates steady on Wednesday, with its Chair Jerome Powell pointing to continued moderate economic growth and a "strong" job market, and giving no sign of any imminent changes in borrowing costs. Powell said the new coronavirus outbreak is "a significant thing which will have some effects on the Chinese economy, at least in the short term." Foreign governments began flying their citizens out of China's Hubei province, as authorities said the death toll there had touched 170. The World Health Organization said it would reconvene on Thursday to decide whether the new virus from China constitutes a global emergency. President Donald Trump on Wednesday signed a new North American trade agreement during an outdoor ceremony at the White House attended by about 400 guests. The U.S. goods trade deficit rose sharply in December as imports rebounded and businesses became more cautious on accumulating inventory. Global demand for gold fell in the last three months of last year as sales of gold jewellery, bars and coins declined alongside purchases by central banks and financial investors, according to an industry report said. Australia's Newcrest Mining Ltd posted a 16% fall in second-quarter gold output due to shutdowns at its Lihir mine. Russia's Norilsk Nickel (Nornickel) said on Wednesday its Global Palladium Fund would deliver three tonnes of palladium ingots to the market from its current stock to provide a short-term relief to tight supplies. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD rose 0.45% to 903.50 tonnes on Wednesday. GOL/ETF

* Palladium XPD= rose 0.7% to $2,305.21 an ounce, silver XAG= gained 0.3% to $17.58, while platinum XPT= climbed 0.2% to $975.70.

DATA/EVENTS (GMT) 0855 Germany Unemployment Chg, Rate SA Jan 1000 EU

Consumer Confid. Final

Jan 1000 EU

Unemployment Rate

Dec 1200 UK

BOE Bank Rate

Jan 1200 UK

GB BOE QE Corp

Jan 1300 Germany CPI Prelim YY

Jan 1300 Germany HICP Prelim YY

Jan 1330 US

GDP Advance

Q4 1330 US

Initial Jobless Claims

Weekly

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