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PRECIOUS-Gold rises as jump in new virus cases weigh on equities

Published 13/02/2020, 12:37 pm
© Reuters.  PRECIOUS-Gold rises as jump in new virus cases weigh on equities
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Feb 13 (Reuters) - Gold prices rose on Thursday as investors sold equities and sought the safety of bullion after a sharp jump in the death toll and infections from a coronavirus epidemic in China.

FUNDAMENTALS

* Spot gold XAU= was up 0.4% at $1,571.23 per ounce by 0056 GMT. U.S. gold futures GCv1 edged higher by 0.2% to $1,574.90.

* The Chinese province of Hubei, the epicentre of the coronavirus outbreak, reported a record rise in the death toll on Thursday, as global health experts warned the epidemic could get far worse before it is brought under control. The 14,840 new virus cases reported in Hubei alone on Thursday, dwarfing the 2,015 new confirmed cases reported in mainland China the previous day, after officials said they had adopted a new methodology for counting infections. Asian stock markets ticked lower as the number of new coronavirus cases at the outbreak's epicentre jumped sharply. MKTS/GLOB

* The yen rose from a three-week low against the dollar, while the dollar held near a four-month peak. USD/

* U.S. Treasury Secretary Steven Mnuchin said on Wednesday that the negative economic impact from the virus outbreak is a one-time event that will not last beyond 2020. U.S. Federal Reserve Chair Jerome Powell on Wednesday reiterated his confidence in the U.S. economic outlook, even as he said he expected some drag "soon" from China's new coronavirus epidemic. The Belarusian central bank said on Wednesday it expected the country's gold and foreign exchange reserves to fall slightly in 2020, but that they would remain above an official forecast of $7.3 billion. Canadian miner Kinross Gold Corp K.TO reported a better-than-expected quarterly profit on Wednesday, helped by record output at its third biggest mine, Tasiast, and higher gold prices. Gold Fields GFIJ.J on Wednesday reported a jump in 2019 profit as the South African miner benefited from increased gold production and a higher gold prices. Palladium XPD= fell 0.8% to $2,384.69 an ounce, silver XAG= rose 0.5% to $17.55, and platinum XPT= shed 0.1% to $960.40. DATA/EVENTS AHEAD (GMT) 0800 Germany HICP Final YY

Jan 1330 US

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