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PRECIOUS-Gold prices little changed amid virus fears, stronger equities weigh

Published 05/03/2020, 12:46 pm
Updated 05/03/2020, 12:49 pm
© Reuters.  PRECIOUS-Gold prices little changed amid virus fears, stronger equities weigh
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March 5 (Reuters) - Gold prices were little changed on Thursday as stronger equities and upbeat U.S. data countered fears that the fast-spreading coronavirus outbreak would slow the global economy.

FUNDAMENTALS

* Spot gold XAU= was up 0.1% at $1,637.80 per ounce by 0059 GMT.

* U.S. gold futures GCv1 were down 0.2% to $1,693.10.

* Asian shares were looking to rally for a fourth straight session as U.S. markets swung sharply higher and another dose of central bank stimulus offered some salve for the global economic outlook. MKTS/GLOB

* U.S. services sector activity jumped to a one-year high in February, data showed, suggesting strength in the economy before a recent escalation of recession fears ignited by the epidemic that prompted an emergency interest rate cut. There are signs the epidemic has begun to weigh on business sentiment in the United States, a report by the Federal Reserve showed, even as the economy expanded at a modest to moderate pace over the past several weeks. The global spread of the virus has crushed hopes for stronger growth this year and will hold 2020 global output gains to their slowest pace since the 2008-2009 financial crisis, the International Monetary Fund's managing director said. The U.S. House of Representatives overwhelmingly approved an $8.3 billion funding bill to combat the spread of the virus on Wednesday, sending the emergency legislation to the Senate. The Bank of England should wait until it has more clarity about the economic hit from the epidemic before making any decision to cut interest rates, its next governor Andrew Bailey said. Euro zone businesses largely withstood the impact of the virus in February, growing at their fastest pace in six months, though a survey on Wednesday painted a gloomier outlook, with falling export demand and disruptions to supply chains. Mainland China had 139 new confirmed cases of coronavirus infections on Wednesday, the country's National Health Commission said on Thursday, taking the country's total number of confirmed cases so far to 80,409. Palladium XPD= slipped 0.2% to $2,572.87 per ounce, while platinum XPT= was steady at $872.40.

* Silver XAG= rose 0.3% to $17.22 per ounce.

DATA/EVENTS (GMT)

1330 U.S. Initial Jobless Claims Weekly 1500 U.S. Factory Orders MM (Jan)

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