March 3 (Reuters) - Gold prices inched up on Tuesday on increasing bets of an interest rate cut by global central banks to mitigate the economic impact from the fast-spreading coronavirus outbreak.
FUNDAMENTALS
* Spot gold XAU= was up 0.1% at $1,592.07 per ounce as of 0046 GMT.
* U.S. gold futures GCv1 was steady at $1,594.20 an ounce.
* Traders on Monday piled into bets that the U.S. Federal Reserve will deliver a big dose of stimulus starting this month amid concerns over the economic impact and indications that global central banks are readying a monetary rescue. The global economy is set to grow only 2.4% this year, the lowest since 2009, the Organisation for Economic Co-operation and Development said on Monday The European Central Bank (ECB) on Monday joined the chorus of central banks signalling a readiness to deal with the growing threats from the outbreak. Lower interest rate reduces the opportunity cost of holding non-yielding bullion.
* Mainland China reported 125 new confirmed cases of coronavirus infections, with the virus spreading much more rapidly outside China than within, while six people in the Seattle area have died of the illness caused by the epidemic. U.S. factory manufacturing activity slowed in February as new orders contracted, reflecting worries about supply chain disruptions related to the outbreak, which has revived financial market fears of a recession, data on Monday showed. Having pared interest rates deep into sub-zero territory and pumped in 2.6 trillion euros ($2.89 trillion) worth of stimulus via asset purchases, the European Central Bank may not have much left to give investors baying for more policy support. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.3% to 931.01 tonnes on Monday. GOL/ETF
* Palladium XPD= gained 0.8% to $2,451.46 per ounce and platinum XPT= rose 1.2% to $870.99.
* Silver XAG= was up 0.5% at $16.81 per ounce.
DATA/EVENTS (GMT)
1000 EU HICP Flash YY (Feb) 1000 EU HICP-X F&E Flash Sale (Feb) 1000 EU Unemployment Rate (Jan) ($1 = 0.8994 euros)