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PRECIOUS-Gold flat as risk sentiment improves on slowing virus threat

Published 12/02/2020, 12:30 pm
Updated 12/02/2020, 12:35 pm
© Reuters.  PRECIOUS-Gold flat as risk sentiment improves on slowing virus threat
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Feb 12 (Reuters) - Gold prices were flat on Wednesday as equities ticked up after China's senior medical adviser suggested the coronavirus epidemic may be over by April, although uncertainty over the impact of the outbreak supported the safe-haven metal.

FUNDAMENTALS

* Spot gold XAU= was flat at $1,567.62 per ounce by 0051 GMT. U.S. gold futures GCv1 edged 0.1% higher to $1,570.90.

* China's senior medical adviser said that the virus outbreak may be over by April, with the latest number of new infections falling to the lowest since Jan. 31. However, the death toll surpassed 1,100. Asian stocks inched up as investors felt that the worst of a virus epidemic in China may have passed, but investors remain wary of the spread of infectious disease. MKTS/GLOB

* The virus, now officially named COVID-19, has already taken a toll on China's economy, as companies said they plan to lay off workers and seek loans totalling billions of dollars to soften the impact from the outbreak. Federal Reserve Chair Jerome Powell told Congress on Tuesday that the U.S. economy is in a good place, even as he cited the potential threat from the coronavirus in China and concerns about the economy's long-term health. U.S. President Donald Trump's national security adviser, Robert O'Brien, acknowledged that the coronavirus outbreak could impact the Phase 1 trade deal between the United States and China, a CNN reporter said on Twitter on Tuesday. Holdings of the world's largest gold-backed exchange-traded fund SPDR Gold Trust GLD rose 0.67% to 922.23 tonnes on Tuesday. GOL/ETF

* Russian gold miner Polyus said it was investing in a new generation of projects, boosted by strong gold prices and higher output from the full ramp-up of its Natalka deposit in Russia's Far East. Palladium XPD= inched up 0.1% to $2,344.20 an ounce, silver XAG= was flat at $17.64, and platinum XPT= shed 0.3% to $966.41. DATA/EVENTS AHEAD (GMT) 1000 EU

Industrial Production MM, YY Dec 1200 Brazil Retail Sales YY

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Federal Reserve Chairman Jerome Powell testifies on the semi-annual monetary policy report to Congress

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