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PRECIOUS-Gold prices hit 2-week high as equities dip on virus impact

Published 18/02/2020, 12:52 pm
PRECIOUS-Gold prices hit 2-week high as equities dip on virus impact
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Feb 18 (Reuters) - Gold prices hit a two-week high on Tuesday as global equities retreated after Apple Inc AAPL.O flagged a revenue miss amid the coronavirus outbreak, sobering investor optimism.

FUNDAMENTALS

* Spot gold XAU= was up 0.3% at $1,586.19 per ounce, as of 0112 GMT. Earlier in the session, bullion prices touched their highest since Feb. 3 at $1,586.90.

* U.S. gold futures GCv1 edged higher by 0.2% to $1,589.00.

* The death toll from a coronavirus outbreak in mainland China rose to 1,868, as of the end of Monday, up by 98 from the previous day, the National Health Commission said on Tuesday. More than 300 American cruise liner passengers, including 14 who tested positive for coronavirus, were flown home to military bases in the United States after two weeks under quarantine off Japan. Asian shares eased on the back of lower U.S. stock futures despite economic measures from Beijing to stem the damage from the epidemic. MKTS/GLOB

* The risk-averse sentiment in the market supported bullion, often seen as an alternative investment during times of political and financial uncertainty.

* Apple said on Monday the iPhone maker was unlikely to meet a sales target set just three weeks ago amid lost production and weakening demand in China from the coronavirus outbreak. The Trump administration is considering changing U.S. regulations to allow it to block shipments of chips to Huawei Technologies HWT.UL from global chip supplying companies, which would be a blow to the world's no. 2 smartphone maker.

However, market sentiment got a boost on Monday after China's central bank cut the interest rate on its medium-term lending on Monday as policymakers sought to ease the drag to the businesses from the virus outbreak. Britain's 1,100-year-old Royal Mint said on Monday it will launch an exchange-traded product this week, backed by physical gold held in its vault in Wales, which will trade on the London Stock Exchange. Palladium XPD= inched up 0.2% to $2,526.75 an ounce after hitting a near one-month peak earlier in the session at $2,532.50.

* Silver XAG= advanced 0.5% to $17.85, while platinum XPT= was up 0.2% to $970.90. DATA/EVENTS (GMT) 0930 UK

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